I don't know the particulars of their rules, but I recommend you look at them very carefully and ensure you can comply before you go any further with your plan.  

Not sure about your area, but many states have laws on RUBS and what can and cannot be billed back to tenants, so make sure you comply with those.

Know and comply with the landlord tenant laws for your jurisdiction.

Violate that lease at your own risk and expense.My advice would be if he received a letter for the HOA lawyer he better comply asap.

But cashflow can also change or not comply with our initial assumptions prior to making the investment.

What we decided to do to comply with the city is to convert the home to a single family (removing one of the front doors), but keep the right side as a distinct space with a MIL suite with a small kitchenette and back entry. 

Assuming she is month to month, give notice of non renewal, then start eviction when she doesn’t comply

Word of advice: Consider taking down your images and blocked out your name and address.Contact the city and let them know you corrected the violating by removing it; see if that is enough to cure the violation, if not, comply with their request. 

If they won’t comply, I recommend using a different company.With so many problems with morris invest and others, I recommend buying the finished turnkey instead of a junker that they’re going to rehab for you because many people have found they’ve been billed for renovations that never took place.

A local experienced real estate attorney will already have a lease they like and that complies with local law on their word processor.