Very involved in the REI community here, sponsors part of the REI Central meetup each month, works with a large portion of the investor base here.

Most of the time it's a scenario where they take a photo (And mark it with a red box in the actual report) of a quarter sized hole on the siding of the house and make a request like "Structural engineer needed for further inspection" lol.

If so many people are considering it a "don't do" and multiple realtors are calling it illegal then why is it on the HUD and why are there specific portions of IRS regulations around how to do it properly?

Based on peoples experiences in MTR in Denver area, is it a good idea to turn a house into MTR, especially of such size?

Claims come in all shapes and sizes, and a myriad of circumstances.

Which portion of the tax code do they reference / how are they interpreting it?

SFR or multi-unit, size range etc?

Then we do a manual J (heat load calc) which will bring you to your manual S (size/system selection) and finally a manual D (duct design).

My initial instinct is to make sure you understand the occupancy expectations for residential but especially the commercial risk portion when underwriting.

EXPERIENCE/TRACK RECORD: A big portion of how aggressive a lender can be with their terms is your experience.