This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Moreover, can you clarify if the complex is already an existing 16-unit or do you intend to build it?   

Let me know if you have an existing group or interested in forming one in 2025.  

 I'm not opposed to subject to, but my fear is whoever I am taking over the existing mortgage from will not continue making the payments.You make the payments.

The existence of a contract -- I agree with you on this -- may be a complete defense to such a claim. 

You're increasing the need for hot and cold air dramatically and it's doubtful the existing system will be adequate.But, in answer to your original question - yes you will need a permit.

We are closing on our first South Bend rental property next week, as our local market opportunities have become non-existant unfortunately.  

Unfortunately, the great jumbo products of First Republic no longer exist but maybe in the future another lender will repeat that one.....

Whereas the majority of the existing clients have stayed with you, but the whale client is with the ex-partner leads me to believe that if this heads to any type of judicial setting that no damages would be awarded.

Buy a new primary home and rent out your existing home.