I'm looking to lock in a good rate, with possibly no prepayment penalties, and low origination fees.

I really appreciate any input or suggestions before I pull the trigger on these large expenses.

It's not liked by most Building Departments because it puts substantially more occupants in a building and each with locked individual quarters and highly taken advantage by slumlords creating fire hazards.

Just a rate does not show what options people can find on the market place.I just locked a loan at 5.99% with 1.15 points and no prepayment penalty for an investor.

So please please please consult one before pulling the trigger.

Seems like you already have your target investment property type locked in which is great. 

Very helpful and all responses have triggered additional questions for my tax guy.

Some type of renovation will likely be required to generate any cash flow in that area, but to be honest; it might still be slim unless it's a heavy renovation.That area is like anything along the NW blue line corridor...great for house hacking, but really tough to make the numbers work on a straight investment deal.You might be better off trying to find something off-market if you are locked into finding a deal in that area.

Change the locks and start getting it ready for lease-up.Determining what is owed is a different issue.  

If you can, lock in a long-term fixed-rate mortgage at today’s rates.