BRRRR Illegal basement Suite Refinance

[Lorie Alexandria]

If I BRRRR a property with an illegal basement suite will I get screwed on the refinance? I don't think I can make it legal because there is a requirement for multiple parking spaces which would be impossible to do. So I wouldn't be able to count the gross rent from the basement … :/

[Anthony Therrien-Bernard]

Quote from @Lorie Alexandria:

If I BRRRR a property with an illegal basement suite will I get screwed on the refinance? I don't think I can make it legal because there is a requirement for multiple parking spaces which would be impossible to do. So I wouldn't be able to count the gross rent from the basement … :/

 Indeed lenders can't count the income from the illegal suites, what they would usually do is use the rent that you would get if renting the whole place as 1 unit. Are you sure you have no parking or garage options to meet the requirement?