Hello,Consider a building with 3 dwelling units, and some common space (laundry room and stairwell.)

It's no secret that one of the biggest obstacles to building Accessory Dwelling Units can be financing.

Dodd-Frank, I don't believe uses the words "lease-option financing" what you will find is that the DF encompasses the SAFE Act and establishes authority over any consumer RE transaction that is designed, intended to or facilitates the transfer of title in a 1-4 family dwelling by doing so.You will be very busy looking up the statutes that have been modified, adopted or the recension of regulations, going back to 1938 that I noticed.Much of this stuff lies in definitions, you can't just read the word "make" or "makes" or "maker" of a financial obligation and assume it means the same thing as a car maker or one who makes cookies, the English word has different applications.

If this is the case I strongly encourage... no I strongly demand including a lease addendum for drug-free housing (as defined in Section 102 of the Controlled Substance Act U.S.C. 802) If you were aware of known charges of PITS and provide a dwelling for him to continue his illegal activities and they become severe enough not only your rent, but your property could be in jeopardy.

And Texans are by history and culture a good bit more self-determined and self-reliant than the average city dwelling American. 

You probably have liability insurance with your normal fire policy per dwelling usually 250k or 500k.

My strategy is to acquire one SF dwelling per year.

The only necessities are dwelling, running water, and electricity.  

It can be quoted on a dwelling fire policy (personal) if held in your own name or a trust... it is written on a commercial policy if held in a LLC or Corp.

It's better to negotiate a move-out plan which results in a better outcome for both parties.As I understand it, in New Jersey (or perhaps in just some jurisdictions) you can't serve a notice to terminate for no cause, so documentation of "cause" is critical, as well as the history of your communications with the tenant and the serving of proper legal notices.Since the yard is in such disarray, it would behoove you to do an inspection of the interior of the dwelling as well.