It's not illegal provided you're dislosing it to all parties and not trying to actively hid it.

From there you assess if month to month cash flow deficit is okay, that's really such a small detail of it.  

But it’s clear you’re a smart investor who knows the long-term benefits real estate can bring.I keep reminding myself why I stick with real estate: you can make money every month in four different ways:Cash Flow – Passive income to live on.Appreciation – Long-term property value growth.Depreciation – Tax benefits that reduce your taxable income.Tenants Paying Down the Mortgage – Even if you’re paid off now, this is one of the biggest wealth-building tools for leveraged properties.It sounds like your main struggle is the stress of active management—and trust me, you’re not alone.

Some things you may want to consider is how active you are looking to be in your investing.

(**Do Not Accept part of the rent other wise you have to go back to start all over)Ten Day Notice of Eviction The Ten Day Notice is used if the landlord needs to evict the tenant for violating the terms of the lease, such as unauthorized pets, illegal activity, etc.

Instead of throwing your deal out to a bunch of strangers on the internet, I recommend you do your research to find a local expert with 20+ ACTIVE years in real estate in your market.

As @Robin Smith mentioned, for assessing demand I used FurnishedFinder.com/stats; you can see demand data for a given city and some pricing data too.

If i were active though it could have a much bigger impact.

You'll want to talk to a local probate attorney to see how much time that could take.If the squatter is not making mortgage payments, you've got perhaps another month or two before the lender begins foreclosure proceedings.In your situation, I would approach the squatter to see inside the property to assess the condition.

The property is not active yet.