The late bills and mismangement should be paid via a special assessment, so it actually comes off after a set time. 

@Bee Vang Property tax on a multifamily building is assessed for the overall property and not per unit.

Living on-site in an ADU and renting out the upstairs is completely legal and will not jeopardize either your Class 1 Residential assessment, your homestead exemption, or any senior property tax relief you may be qualified for.There are some local architects who have ADU experience; you might find some recommendations at the DC-based CSG's ADU forum.

I previously posted about the purchase on the following forum link: https://www.biggerpockets.com/forums/522/topics/546300-first-investment-property-havelock-ncAfter a year of living in this property, and sporadically house hacking it, I started assessing the true cost of living there and how it could possibly perform as a rental. 

= $47.4kFor Cap rate, I'm not sure the place would be worth $400k, that's why I'm asking if that's reasonable but let's assume it would be: $47.4k/$400k=~12% capAny further insight or thoughts on my assumption for repairs/maintenance costs / assessed value are appreciated.

The more you learn, the easier you will be able to assess the variables.

-Comparative Rental Market Analysis – we used two realtors and multiple online tools to assess the rental CMA - the neighborhood shows a $0.75 per sqft corresponding to a rent range of $[N.NNN].

What % of the assessed value should i go up to?

I will be occupying about 35% of it and the rest I will be renting out.The bank originally assessed my building at $1m.

I have a fallen tree issue and would like to connect with someone local to the market to swing by the property to send video/ pics.