And these were Portland Metro assets so NOT low value mid west assets.. we did this until the law changed and it was illegal to buy pre foreclosure and rent back here in Oregon..

@Mindy Rosscup, you want a contract that is specific to the laws of your state.

With all my respect, most real estate agents have no clue what the laws are.

I'm definitely informing law enforcement now.

Next year, your income may change; your family or tax situation may change; tax laws may change.

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'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.

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.

It offers affordable housing, solid rental demand, and generally favorable landlord laws.

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.