There were a handful of issued that required some decision making but other than that we have a really good crew down there and they make my job super easy.

@Jordan MyerThank you for the advice, I think that is what I am going to do as they are good tenants generally, they just need to comply with the occupancy requirements which can be fixed by updating the lease and ensuring there is no fourth occupant.

Quote from @Andrew Syrios: $200,000 at 22 is a really good place to be quite frankly. thank you, it has required an immense amount of hard work and sacrifices but it’s been worth it. 

It is popular amongst investors because you don't get capped at a certain amount of products, it requires less paperwork, and it doesn't look at DTI/taxes/income.

There are strategies that you could do to try to get future paper losses reducing your active income, but those require you to change your income-earning activities.

However, modern appraisal practices require that these spaces with low ceiling height be valued LOWER similar to how a finished basement is valued.

Costs will vary depending on location, site conditions, development requirements, zoning requirements, type of construction and the level and scope of interior finish.

But in Florida and Alabama, if anything done requires a permit then only licensed contractors can do it.  

If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

Our minimum requirement for credit score is 580. 1 of the applicants credit score is 558 (this person makes majority of the income) and the 2nd person has a 661 credit score.