Long time reader but first time poster here. I am in a bit of a pickle and thought I would come to this forum for some advice. I am currently in the process of purchasing my first home, a semi-detached property with 3 bedrooms upstairs an unfinished basement and secondary entrance in Edmonton, Alberta. My plan is to renovate the basement into a secondary suite and rent it out while living upstairs with 1-2 roommates and having a couple downstairs. I plan to move out in 2 to 3 years in which time I would fully rent out the place expecting to get $1500 upstairs and $900 downstairs based on current rental prices in the area. With these numbers the place would be generating north of $400 / month in positive cash flow with 10% vacancy and 100/month in maintenance fees considered (also property taxes, utilities and home insurance are considered). Now this all sounds fine and dandy but when I investigated further I found out that currently the City of Edmonton only allows secondary suites in Single Detached Homes BUT the bylaw is currently in the process of being amended but will not see City Council for 2-5 years (was told by a Senior Technical Officer from the City of Edmonton). After finding this out I am starting to second-guess my whole plan as even after the bylaw is passed there is still no guarantee my property will be legally allowed to develop a secondary suite due to other restrictions (IE: # of available parking stalls, lot size etc...). Also, the property has only two very tight parking spots in the back with available parking in the front being scarce at best which is another concern.
Now my question to all of you is do any of you own a semi-detached home with an illegal secondary suite or know of someone that does and gets away with it? Is it worth the risk of investing $15,000ish into the basement to turn it into a secondary suite in hopes of not getting caught? Is the worst case scenario of getting caught really that bad seeing as I could probably rent the whole house as a 4 bedroom place for $2000/month? How big of an issue is the parking out back?
Any advice would be helpful as I am almost in full blown panic mode right now :S