The location is very good with many small apartment and condo buildings being completed over the past several years, suggesting that this could be a better approach than the ADU option. 

@Jeff Bethke - if you have plans for the equity and an approach to pay the money back, take out a HELOC. 

Your broker may have forgotten, but when the appraiser reports back to the lender that it is a rooming house, the lender will walk away or only underwrite an LTV of 50-65%.Your best bet is either a private lender or finding a conventional lender which uses auto-approval software (TD is an example) and mortgage agent/broker who can steer you towards an application that qualifies for auto-approval (if at all possible).When we were first in the same situation, we approached a family member with a proposal to have their name on title and live in the house (rent and utilities free) in exchange for their serving as the Den Mother to keep the house in order.  

I understand it's not a 'one size fits all' approach, it's just to give you another perspective on other possibilities while you decide whether to househack or not.

How are you approaching the pricing?

My JV partner was approached by the seller who wanted to get rid of their house.

My strategy has never been the shotgun approach like that on offers.

We are approaching year 5 of ownership and plan to sell eventually, but not sure of the tax implications of renting out again before selling. 

So escrow approached the seller for the demand and reconveyance, but the seller/lender is not cooperating and not communicating.

I wanted to reach out to our BP community first to take the team building approach before posting a more formal ad...but I can only hold out for a little bit longer so please only jump in if you're serious. :)We have the territory of El Paso County, CO and Pueblo/Pueblo West doing Lease-Purchase deals.Any folks in Colorado Springs or Pueblo up for growing with us as a team?