However, after receiving the survey results, I discovered that the house is located less than 1 foot over the sublot line (see attached image).Here are the options I’m considering:Rent the current house for market value (~$1,500–1,600/month) and convert the detached garage into an ADU to rent for ~$1,000/month.Relocate the house to split the lot, then sell the newly created lot (~$100,000) while renting out the existing house.Relocate the house to split the lot and build a new home on the second lot.Demolish the current house and garage, split the lot, and build two new homes.At this time, I am uncertain about the cost of relocating the house.Questions for the community:Has anyone faced a similar situation?

A home loan is made via the note with a Mortgage/DOT (depending on state) attached as the security instrument, which allows the home to serve as collateral if the note is not upheld.

Its a 3 bed, 2 bath, main house with a den and attached guest house.

If you have someone in MN you trust to manage the place that is one thing, if you don't it kind of answers the question (not that you couldn't find one).Renting out homes which you are emotional attached to can be quite difficult when tenants trash them (which will eventually happen).Best wishes

@Ken M. we live in one, it has an attached unit, but with a door that passes through from both units.

Quote from @Charles Perkins: Quote from @Natalie Kolodij: Quote from @Charles Perkins: I have an attached ADU unit in my personal residence as well as a business office/ business storage area in my home. 

To expand a little on what is mentioned the underwriter's guideline, a DIL does not extinguish subsequent liens, so if the borrower has judgments against him/her/it that attach to the property, the DIL grantee takes title subject to them and may have difficulty getting them released later without payment. 

Its a 3 bed, 2 bath, main house with a den and attached guest house.

Attach Form 8082 as the last page on your 100 page + paper return.  

The reason hard money is not cash (although some think it is) is because there is still an appraisal attached to it.