Legal Implications & Ramifications : As an example; the iconic PCH homes in Malibu and many in the upper foothills might not permitted to build back, certainly not to the same extent or materials.

Whatever is closest to "Legal". 

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.

I recommend legal advice from an attorney.

One question that you may not want to post here for legal reasons, is how much are you paying your PMC?

This is assuming the way you notified the tenants of the new rent was considered legal notice in your market. 

@Kash Tacke legally, you would need architect drawings to get approval from Detroit Zoning Board.

With software like propstream I can even look at seller mortgage details and MLS private remark.Getting license you only know the legality aspect of being an agent but doesn't necessarily means you would be a smarter one to get to know the market.The only thing that I can not do with propstream is I can not download all disclosures when I try to purchase.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

We know that investing in real estate means building a business that incorporates the right investment strategy, tax & legal plan, financing, retirement planning, insurance & estate planning.