He probably misinterprets the law that nothing ADDITIONAL can be collected from a tenant with an ESA, but a generic security deposit appears to be collectible. 

If you don't get any additional feedback, you should be able to call the City of Phoenix Planning Dept and assess the overall process, timeline, fees, and feasibility fairly easily.

FINANCIAL CONTRIBUTIONS:1.1 Party 1 Responsibilities:Party 1 shall contribute to the partnership for the down payment, closing costs, and construction costs for renovations and additions.1.2 Party 2 Responsibilities:Party 2 shall independently pay the mortgage until both properties are rented, oversee construction and renovation, manage both rentals, and handle bookkeeping during construction.2.

Penalties:Misdemeanor of the first degree: This can result in a maximum imprisonment of one year and a fine of up to $1,000.Civil penalties: You may also face additional civil penalties depending on the specific circumstances.Permitting issues: Local permitting authorities might withhold final approval, revoke the permit, or pursue other actions against you, maybe not give you the CO. 

Exactly and all of that plays into the price you're willing to sell the additional frontage for to allow for the new lane.

Granted there are also additional financial burdens not reflected in the credit report. 

Debt if used responsibly is a valuable tool but to say debt will always multiply returns is the wrong message to spread in these forums where there's a ton of readers who are inexperienced investors and will fall for the trap of following your flawed approach to originating debt.If you need additional help understanding how debt works in real estate, please send me a DM and I would be happy to help you out.

In addition, Scottsdale has a limit of only 6 adults per house, no matter how large it is.These restrictions have nothing to do with red/blue states, they are the result of NIMBYs, who are all over.  

Most correspondence lenders will not want you to in addition get a fee.

In addition to my role in mortgage underwriting, I also own a duplex, which has significantly fueled my interest in the real estate sector.