Hotel to apartment conversation

[John R.]

Hello, I have the inside scoop on an extended stay hotel in Dallas Texas. Going for about 12% cap rate. Property is 20 buildings with about 80 units. From my math it could make an excellent conversation to apartments which are going for much lower cap rates in the area right now. Area is fairly low income and most if the Tennant have been staying there 6+ months so it basically is already is functioning as an apartment. I'm having trouble finding or getting answers about the zoning, certificate of occupancy, and other changes that would need to happen to complete the conversation. Im concerned that I would have to apply for a new CO and would be required to bring the older building up to current code including things like adding fire sprinkler which would obviously be expensive. Has anyone gone through this before or have any insight into the obstacles I would face?