It sounds like you are going to be a tire kicker wasting your time and your agents time with unreasonable expectations.

So the enforcing agency gets to determine, but HCD is present to intervene if the enforcement agency is being unreasonable.  

I get what your aim is and I don't think it's unreasonable.

It is unreasonable to think that you will have positive cash flow if you are borrowing 80 percent.  

If he’s still unreasonable, contact a real estate attorney ASAP! 

House-hacking by room is a topic that pops up when we're late in the real estate cycle; in tier 1 areas multifamilies available are scarce or priced unreasonably so one is 'forced' to rent rooms instead of multifamilies.Things to consider:1) Exit strategy - are you forced to live on site and manage it? 

But my local real estate market is unreasonable for investing.

To Samia & the BiggerPockets Community,I have made every effort to resolve this situation amicably, but the other party has been consistently unreasonable and uncompromising.

It's not unreasonable expectations.

The principal sum, plus all accrued interest, as defined above, shall be paid to the Holder upon as set forth herein.Payment & Due Date: The Maker shall not be obligated to make any payments ofprinciple during the term of this loan until January 4, 2024 ('Due Date"), at which time the entire principal balance, plus all accrued and unpaid interest, and other charges, if any, shall be immediately due and payable in a lump sum balloon payment to Holder.Collateral: This Promissory Note shall be secured by a mortgage lien against thefollowing real property: Address listed; (the "Property"), executed by Maker for the benefit of Holder.Assignment: This note is NOT assignable by Maker without the written consentof the Holder, which shall not be unreasonably withheld.Default: The occurrence of any of the following shall constitute an "Event ofDefault':Failure to make any payment due hereunder;Nonpayment of principal upon the Due Date;The breach or failure to perform any of the terms, provisions, conditions,promises or agreements in the Note, that is not cured within five (5) days ofthe date of written notice from Holder;Any representation or warranty made or deemed made by or on behalf ofMaker to Holder under or in connection with this Note shall be materiallyfalse on the date as of which made;