Additionally, a security system and fire suppression system will give you more insurance options.  

What seems to be the appetite for stricter guidance/rules around short-term rentals?

So that $1M will buy you as many as 5 units out here.Also consider that employers have a much bigger appetite for remote working positions nowadays.

Reaching out to my passive investors now to gauge appetite. 

Not sure they'd have an appetite for such a small loan amount though.

I would say it would depend on future legislation.There seems to be a political appetite for increased regulation and reduced profits for lenders and landlords.Hoping we dont get to that point

They've literally voted for this for years by making it difficult/expensive to build in certain locales, flooding trillions of dollars into the market, suppressing interest rates so we're a country of cheap credit junkies, creating a class of American that sits somewhere between a renter and an owner with rent control laws in that they have ownership privileges in every way except that they don't actually own the property, etc. 

Hi Brian,Make sure zoning allows a 4 plex.Make sure you have enough Amperage at the drop for another family.Make sure you have the amount of parking you want to offer the market.Make sure you have enough water coming in for 4, especially if it used to be a 1.Make sure you don't downsize the 4 rental sq ft to be worst in the market vs having a very marketable 3 plex (re sq feet).Make sure you do not trigger any added fire code things, such as requiring a fire escape or fire suppression systems, etc...Find out If you will be required to now have a dumpster as a 4 plex, and where will it go.Find out if the remodel will trigger any grandfathered items to be delt with, ei bring wiring to 2021 code for entire building, ditto heating and building thermal requirements, etc...Find out if the lender is "On Board" with you "Restyling the Asset" in this manner they are lending on.A 3 to a 4 is bigger scope job than putting in a new kitchen, and the lender may not consider it re-hab, meaning it might be to them, construction, and not allowed on the loan type you are seeking.Good Luck!

Some items to note would be time of ownership, rent roll, type of leases, lender appetite.

I have a property under contract in a rural area of Michigan. The insurance quotes are literally 6x the normal cost of a building of similar size. This is due to the property's proximity to a fire station (7 miles) an...