Downside is good cause eviction law passed back in the fall.

It is my understanding that a CPA is only responsible for making sure you follow all the laws when filing taxes, but there is another role that is responsible for tax strategy and focuses on tax savings. 

Choose non-judicial foreclose states with pro-business laws like Texas and Georgia.I have several high worth individuals who fund rental RE in GA earning 7-8% APY on 5 to 10 year terms.

I guess for me the dividing line is does it damage the function or cause a safety hazard if I leave it on the tenant.  

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise egregiously violating the law.

Or else reduce enough on price to deal with an eviction from an illegal unit.I don't know Chicago laws, but in NYC if you have an illegal unit, the tenant occupying it seems to have more rights than the owner does and doesn't have to pay rent... 

You need to think about not just the potential income but also the potential problems such as city ordinances, state law, insurance, potential eviction issues, etc.

I recommend quoting your state law for right of entry, or something very close to it.I say we will inspect, but I don't give a timeline or frequency.

I'm definitely informing law enforcement now.

I have more than enough private investors willing to pour their money in and I realize that there are diminishing returns when considering time spent looking for deals or deal finders and the amount of deals I close.I'm a real believer of the Pareto law which states that 20% of effort leads to 80% of results.