It isn't easy to make things pencil, and I don't see it getting much better over the next 12 months.I have changed my rental strategy to Co-Living (rent by the room).

While many in the real estate community would frown on locking more equity into a deal then required for me it gave me extra breathing room if the market flipped and my cashflow on this property was $920 per month. 

I change out rugs a few times a year in my living room.

After looking at a lot of them, I would probably only be interested at 40 rooms or more due to staffing levels. 

Currently renting a room at my primary residence for some mortgage offset.

Take some time and post pics of the various rooms.

Rent by the room/multifamily properties will give you cashflow, the tradeof is more management.

. - 2 story house with very small rooms and and 2 steps down, imminently as you enter the front door.- Gated community and in a reasonable HOA. - The home is 2 payments behind and already got a letter from the lender about future foreclose.

This leaves a lot of room for interpretation and that is exactly the issue we are having at the moment.

Interested in getting some extra income with converting the extra space in the basement into a rentable unit.Basements in a one-family home can be lawfully rented only if the following conditions are met:Compliance with the Housing Maintenance Code for minimum room size.There is a minimum ceiling height of 7 ft.The walls, as high as ground level, must be damp- and water-proofed if HPD determines that subsoil conditions on the lot require it.The basement is occupied by one family and does not include boarders.Every room must have at least one window.The bottom of any yard or other required open space cannot be higher than six inches below the window sill of any required window in the room.