Plus, how is a tenant going to view the fairness of paying half the water bill, when there's no way to prove they used half of the water. 

You have to be careful as a landlord to be in compliance with all current fair housing practices.

Fannie will give you the best rates and terms on 1-4  units) If its more than 4 units, then more details come into play?

If a buyer of mine is in the situation where the numbers are heavily reliant on that extra bedroom, I will write it as a contingency into the contract that the legal use of that bedroom is confirmed during the due diligence period so that, in the worst case, if it's unusable, we are able to offer a different amount or back out if the seller won't play ball.Feel free to message me if there's any way I can help!

You don't really talk about real estate or what's going on in the community since you're playing a game, but eventually you'll strike a conversation with someone who knows a lot about the area as well.

They both insist that there are creative ways to structure this deal so that me and my mother can LEGALLY , and secured by CONRACT, be able to collect the net proceeds, and split it 50/50 as her and I agreed from the start.One of the proposed arrangements I researched and sought legal consul for, and am fairly certain would in fact still be an act of fraud.A broker brought in an investor who proposed the idea of purchasing the Mortgage Note, and giving us the difference, secured of course in advance by a contract where we would agree to forfeit the Security(house) once the note was purchased. 

This way the mortgage is being paid down for you AND you can make a play at the appreciation you seem very sure of.

Guy is playing a game of chess.

@ Jill PetersonI suggest having an applicant scorecard so that you can review candidates on a level playing field. 

They are actually fairly active.