It is almost always a terrible idea to find a generic form and make it work for your situation without consulting a lawyer.

It's time to choose a new flooring and I'm having a terrible time deciding.

The extra insurance estimate and those misc. expenses should easily be $100/month.Now you have:The house hack scenario:monthly income : 625monthly expenses for the rented half: -312.50 (50%)P&I (your mortgage): -569.32PMI: -50cash flow: -306.82Cash on cash return: 0%Full rental scenario:monthly income: 1250monthly expenses: -625P&I: -569.32PMI: -50cash flow: 5.68COC return: (5.68x12)/((109900*0.035)+3000) = 68.16/6846.50 = 1%If your goal is to house hack and shave off some living expenses, it's not a terrible deal. $300 for your "rent" isn't bad and is less than half of what you're currently renting for.

It's not a terrible decision, but I would have let them go and put someone in at market rate. $100 a month is $1,200 a year or almost one month of rent.

This would be a terrible market for you. 

Bureaucrats are terrible at assessing true value.A big challenge with duplexes are getting comps, both on the purchase and sale side. 

They do things like use comps that are in terrible shape to comp to a house that was recently beautifully rehabbed or use comps from deep in the ghetto to comp a house that is in a hip trendy good area or in one case I had the appraiser use a comp from Independence MO for a house that was in South Hyde park....10 miles away and in a completely different city!!!

I just paid $6850 to do this in a row home in Baltimore County but we moved things a bit so there was some additional ductwork involved.Also, unless the plaster walls are in terrible shape I wouldn't do anything to "modernize" them.

So this deal is terrible but I am practicing to get better at running my numbers on properties so any advice anybody has is greatly appreciated!

Terrible idea, but it happens.