I know some states do, but I am sifting through Michigan law and just not finding anything. 

Hi @Elaine Hesterhttps://www.yelp.com/biz/justice-law-group-san-die...You can try Justice Law Group, the owner Cameron is a realtor, investor himself, and can provide contract review services. 

I currently live there and was wondering about using the house hacking method to convert my 800 sq foot basement into another large bedroom/ in law suite.

Alabama has somewhat unique laws with tax deeds.Denise Evans knows this stuff cold, I can’t tag her....I believe she does have some you tube stuff on this, should be easy to find, or do a colleague request to her....she is Very helpful to newbies at this. 

My current City in California doesn’t have rent control laws in affect just yet.

And they will keep you compliant with all those nifty federal laws designed 'help' the consumer.

The most profitable places in my experience are “2-in-1’s” where you have a home with an in-law/guest house.

(The law has changed, can't do that now.)

However, some are sold subject to outstanding code violation liens, hoa debts, etc.The law doesn’t dictate this, your contract does.  

Much real estate law varies by state.Good luck to you!