I wanted to ask what do I need to do to investigate whether the 3rd bedroom was legally added to the property?

She doesn't seem to know who is responsible for investigating as well. http://www.youtube.com/watch?

Many lenders are restructuring products to avoid further investigation into their books.

The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.

(even if it's likely the IRS wouldn't investigate, the family still won't want to take that risk)

If you don't have a destination - then what are your specific parameters for a destination and locate areas that fit where you want to live and work.Third, investigate the area online (if it is to far to drive) use google earth to take a look. 

However, you still need to investigate the zoning ordinance itself carefully because there may be requirements to the use.

I am going to do some further investigation into all of those areas you mentioned above. 

AKA the recommendation does good, ethical, fairly priced work and the agent has thoroughly investigated the work they do (checked references, seen them in action, checked for licenses/insurance, etc.)I have received recommendations from agents in the past where it's clear they made the recommendation SOLELY for the kickback and of course that's infuriating.

The numbers sound good and the property is worth investigating in my book.