The standard rule is $250k per person who legally owns/occupies for the 2/5 year requirement. 

I'm reaching out to Baselane's leadership to put some sense in them about good banking practices and honoring legally bound leases, that they ended by breaking through this action.

Additionally, tenant issues and legal complexities around eviction can make management more difficult.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

Do not rely on it for legal advice.

This extra road frontage now also qualifies my property to be able to be legally converted into a triplex from a duplex.

If the bank will call their note if you commit to the transfer you can also check out this article as one strategy that has been used to work around the issue.This is not legal advice, just my opinion as a real estate investor.

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

.: Some of you have reached out to me to see if we can connect on zoom or other means to pursue legal options.

I recommend legal advice from an attorney.