If you want to properly protect yourself, use layered insurance when you start. 

You might consider giving a notice to the entire building that you will be doing a walk-through on a certain date to check the condition of the property - you have a right to maintain your property and access all units if they are home or not with proper notice.Also, make sure that your notices have a person named as UNKNOWN OCCUPANTS listed.

Upping the budget for a proper property is not an issue.

Investing in syndications, done properly, takes a lot of time. 

Big expense will be if you have proper ceiling clearance or not.

Diversification can be helpful but only if you build the proper teams in each place. 

(However, the software is geared towards smaller companies)(There are specialized softwares that larger companies use).Quickbooks can handle the accounting for a small business who does flips.In my opinion, you likely need to take a class on QuickBooks to properly and efficiently use the software.There are likely some schools nearby that will teach you quickbooks.The alternative is to out-source it to someone who is focused on the real estate accounting space.Best of luck.

Ensure all additions meet local building codes and have proper permits.In your specific case, converting the loft into a bedroom and adding a bathroom could be a smart move, potentially increasing your home's value and appeal to larger families.

Screen properly.

Brian I tried to connect but not sure my request went through properly on BP.