Newbie to RealEstate and Here buying/investing in my First Multi Family unit

[Sarki Amada]

Six months ago, I landed in a new, small city with big dreams. While initially drawn to flipping houses, I quickly discovered the potential in multi-family properties. I have seen two properties that I like:

Property Clarke:

• Size: 1,089sqm (11,695sqf)
• Currently has a fourplex on it.
• Sloping ground limits building space.
• Located just outside downtown.
• Listed for $870,000.
• Nearby properties are priced between $850k to $1.2M.

Property Battle:

• Size: 378sqm (4,059sqf)
• Currently has a 3-bedroom house.
• Flat land, which is easier to build on.
• Right in the heart of downtown.
• Listed for $520,000.
• Nearby properties range from $750k to $1.2M, with an 11-unit building opposite listed for $1.5M.

I approached the planning committee to make enquiries on what i can build on there because the Property Battle is so small at 378sqm, but they said they won't allow me to add any unit, but after much persuasion, they sent this email:

Now the seller doesn't know about this development and I didn't even negotiate with the seller yet. Now that i'm allowed to add additional units to the property but to maintain the outlook of the property as a 2 story house, I intend to do 3 units. 2 Units of two bedroom ground level and 4 bedroom unit upstairs. I would then sale/refinance the two units below to give me more cash to get another property and then live in the 4Bedroom upstairs. A unit of 2bedroom condo in that area is sold for over $650k. But then i found out that to sale/refinance those units i have to convert it to condo first.

Now, I have decisions to make:

1. For Property Battle, after putting down a payment, should I immediately start the process to convert it to condos? This would let me sell or refinance the ground units and live in the upstairs 4-bedroom unit. But converting to condos requires paperwork and possibly legal challenges. Should I finish building first and then think about conversion?
2. Should I also invest in Property Clarke at the same time? It seems like a good deal, and I could potentially add more units. But if I go for both, I'll need more money.

Extra Info:

• I'm not from here, so I need someone local to help buy the properties.
• I have the money for the down payments.
• I might have enough for construction.
• Property Battle is a very old building, around 100 years old.

I'm at a crossroads and need some advice. What should I do?