How does one take the owner finance situation to a bank and turn it into a 30 year loan to hold without an additional down payment of 20 percent ?

If they say put up higher railings, additional smoke detectors, etc, complete it promptly and document it.I've been in the landlord business for 20 years, and I've always kept my properties to code and well maintained. 

I’d greatly appreciate your thoughts or suggestions on alternative approaches we might consider. the pro and Cons of this approach recommended by a lawyer, when it comes to tax, refinance, etc..Additionally, if you know of any CPAs or lawyers in your network who specialize in real estate investments and asset protection, I’d be grateful for a recommendation (DM me)Looking forward to your insights, and thank you in advance for your help!

We are looking at investment properties in Brooklyn, and found one we liked and want to add an additional floor (two stories as of now, would go to three), but the zoning is M1-2, which is commercial.  90% of surrounding properties are multifamily residential as well.

Not adding any additional living space, just dividing the two units, putting a kitchen in one of them, and probably not having to add a bathroom to either unit.  

If your property does not have additional upgrades that make it worth more on the market then you likely need to drop the price.

Since you're purchasing it under market value, you shouldn't have an issue getting it appraised at $145K.The seller would net $140K and the additional $5K would be seller's concession towards broker commission and closing costs. 

Although the rates are higher, for most borrowers, the convenience exceeds the additional cost.5.

Without knowing your age, I like the idea of pushing additional savings into good, no load index funds (I like Vanguard's S&P index but there are plenty of others) through a Roth if you're young enough, leave the rental portfolio as is and pay the debt down to nothing, since you're not inclined to really work at growing that end of it. 

It's just that with Cali, there are many additional hurdles between you and success.