Pics are time stamped and have the GPS location in each picture as well.I want to dissuade them from trying to file suit against me, as it still takes time and hassle to fight, though at this point I've already compiled most of the evidence.

If you wanted to fight one mortgage for both units, look at the electric meter and water meter for the building.

He is still fighting the taxing authority in court over this.A large community was sold to a less experienced buyer who in cutting corners failed to determine that the water supply was contaminated by Radon.

My personal opinion is that you really analyze your personal situation and make the investment that best suits your needs and capabilities.  

I've seen more than a few times a 2x10 sistered on to the old 2x6 joists that dropped the ceiling height another 4 inches, and 2x6s  used to raise the floor to be level across while still being able to run piping/hvac below.If you don't have the cash to do it right, I'd say just leave it as is since either way it'll be a fight with the city if they find out.

He's capable of so much more and he knows it.

Since you are going new construction, the difference in cost between 2bed and 3bed is not that much and the ability to get tenants for 3 bed is much easier and therefore more income capability.  

The board didn't put up a fight.  

Very knowledgeable and capable on the construction as well as the numbers side of things.

I would ask if I was capable of doing a project in this scope etc..Hope that helps - Anish