So, if you aren't licensed you don't want them to report you to the state because I believe the fines can be hefty. 

My mortgage lender said they aren't able to do this and sent a letter saying it's not possible.

However, there are some additional steps involved with Section 8, like coordinating with the local housing authority.

I didn't see a Biggerpockets book on commercial properties (maybe there is one that I didn't find) and I don't know which book to buy or which author to trust on Amazon.

These are often properties that aren’t even listed for sale.

In the short term, if your property is still standing and others are heavily damaged, prices could go up due to reduced supply—there are just fewer homes available that aren’t in need of repair.

So, I’d dig into the numbers before making a call.Local zoning and code regulations: Converting a multi-family property to a single-family unit might require permits or specific approvals, so check with your local building authority to avoid surprises.

The market is always right and it's telling you your terms aren't in tune with the local market. 

Really it's burnout as humans aren't designed to work graveyard shifts (look it up!)

If they call from another number, tell them you've given them the information and you're sorry if they aren't happy with the answer, but they are being billed for damages they caused and then hang up.