*None of this post is intended to be legal or professional advice. 

It is absolutely a bedroom so long as the exterior window meets legal egress size minimums for your local area and should be marketed as a bedroom.

So how can we legally deny her, because she wasn’t convicted of those crimes (and she has the expungement letter).

You'll need to prove that you are within the law to take away another person's legal right to property.

Reaching out to all my resources to see if any one has any recommendations as to who to use as an attorney to overlook and draft my PPM so that I can find investors, raise the funds required to close the deal and, and have everything in writing ready to go to prevent any legal discrepancies.

Many are legal, some are probably not so legal, some are probably specifically prohibited - so for sure you need to speak with an attorney about your strategy before you dive in.If my memory serves me right, it's what armando built his first guru program on - maybe it was his hair, or his smug attitude, or it was just him... but everything about the "subject to" thing rubs me the wrong way.The entire concept, i believe, really is way beyond a basic or straight-forward deal, and also puts your client in a fairly precarious position where the note could get called at basically any moment, and if they can't pay off the note (which they can't, hence the agreement to the subject to) they just defaulted and are now facing foreclosure - In fact, I witnessed this exact situation today on a $12mil note that got called in UT county.

There are a lot of ins and outs so I don’t want to misinform you with my  “non legal” advice but one wrong step in the process and you start over so seek legal council. 

To fully cure the encroachment, you will likely have to file a new legal description for both properties and reset the boundary lines, or create new parcels with the encroached areas.All of this can be dealt with - but it's going to take time & money and most importantly, cooperation between all the parties. 

You'll get to take the 121 primary residence exemption when you sell with some restrictions.1.

The two would be very different legal speaking.