If it meets code but simply wasn't permitted, you can probably rectify it with a few hundred bucks to your local government. 

I acquired a commercial office property in Tennessee with a 7 year lease commitment from the State of TN government.

@Carrie Reymenthttp://files.consumerfinance.gov/f/201204_CFPB_HEL...The link above takes you to a PDF circulated by the Federal Reserve.  

@Ryan Keenan a conventional loan (the loans governed by Fannie/Freddie) you will need reserves starting with the 2nd property you own.  

Subordinate Liens: Except as permitted by federal law, Borrower shall not allow any lien inferior to the security instrument to be perfected against the Property without Lender's prior written permission.

Portfolio loans are governed by each bank's board of directors.  

But it's too late to switch by that point, typically, so they suck it up and have to pay that five figure transfer tax last minute.Box C stuff also aren't things that the lender controls, even though the government calls them "loan costs."

FHA/VA loans are backed by the government up to a certain percentage, so in the event of default the lenders are guaranteed to receive a portion of the principal back. 

While it's nice to have your own securities lawyer and necessary if doing business online investors may come forward from many different States on an SEC 504 reg D filing with just a handle of local investors we suddenly had blue sky laws from 4 different states as peoples subscribed with their out state LLC's quickly subscribed its hard to turn down those investors as accredited investors, I Found many investors held their money out of state in LLCs even if they were a neighbor the source of funds was a 401k or LLC in another State. you would have to spend more money writing investor subscription terms for each States special Blue sky laws. it's usually the cheapest to file with Federal SEC to cover all investors.

The government doesn't just come in one day out of the blue & take away your home because of your tenant's activities.