We're landlords, we provide safe and legal housing for a reasonable market rent rate.

Can't really help you, this is legal territory, your best bet is to get a RE Attorney to help you with this.

Might check on the parking requirements as the concentration could be higher for multi-family.As Wayne mentioned you'll have a minor subdivision project changing the legal descriptions to a common lot, that can be political.

If you find something wrong with the books and negotiate concessions before spending on inspections and other items then you at least know before dropping a ton of coin that the seller wants to play ball.No legal advice

is it legally a risk?

Or legalities that we would be responsible for say if a pet were to bite?

Some lenders underwrite to the 43%, or will go off of the Fannie Mae / Freddie Mac automated underwriting findings which presumably will allow a higher DTI for the time being.Some lenders such as Provident Funding wholesale and retail have guidelines show with the 43% DTI for their conventional loans.

It's a technicality to be sure, but legal.

@Nate Downsyes you can get a Conventional loan for an investment property, FNMA currently allows up to 10 financed properties (properties 5-10 are subject to "multiple financed properties" guidelines, which are stricter.If you have 1-4 financed properties, you can get cash out of a 1-unit investment property up to 75% LTV (2-4 unit investment properties up to 70%)if you have 5-10 financed properties, you can get cash out of a 1-unit investment property up to 70% LTV (2-4 unit investment properties up to 65% LTV)

Brian,Welcome to the BP community.Best of luck with your legal and real estate career!