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If you live in the illegal apartment, and it's separate, then what you've done is use an R-1 (single family home) zoning as an R-2 (duplex), and since that wouldn't be legal, the tenant may be able to successfully sue you for renting an illegal unit - even if you are in the illegal apartment - just because it's not legal to have 2 separate apartments on that property.I'm wondering if you could somehow rent it as a roommate situation, though, and get around that.  

If you're accredited start researching potential syndicated deals- Some you can get in for as little as $50K; muitifamily, storage facilities, Residential Assisted Living..... 

We're now 2y+ in, and set ourselves up for a live-in-flip.

Just make sure to have an inspection period to check out all the units, review leases, make sure tenants are paying (are leases month to month, when leases go through, everyone paying on time or are some behind, how long have they been living there/did they just moved in).

My calling is to help as many people as I can to achieve at every angle of their lives, so I am passionate and ready to tackle this new venture.

Quote from @Mackaylee Beach: Vinyl flooring is my top choice for achieving a clean, modern look at a lower cost.Its versatility and durability make it an ideal option for various rooms, from kitchens and bathrooms to living areas and bedrooms.

After all, you do not want a tenant living in your property who does not want to be there, or cannot financially support the monthly payments.With all of that said, my greatest advice is to get a lease termination agreement in writing.

I live in Massachusetts and I'm looking to cooperate with other investors for buying a multiunit building. 

Karl, You're living your worst case scenario right now!