This may not be a worthwhile pursuit if you don't fall under that category because there is some added risk involved.4.

Did you ever have to get a lawyer involved or did it not go that far?

Yes, getting sued is a risk factor and I've been involved with frivolous lawsuits which are not fun, but in my opinion you'd be in a much better spot owning a property in your personal name that let's you keep an extra 10-20% of the purchase price in your pocket as emergency funds, as opposed to buying the loan under an LLC that requires every last penny you might have to make the higher down payment, then you have to operate on a shoestring.

Steps 2 & 3 would be the main contributions of a Civil Engineer who is involved. 

All of those can be seen in the thread linked below.Who is Bob Stevens AKA Bob Prisco and what's his involvement in Cleveland?

If you don't have VAs or don't have other owners involved, it might be all you need. 

It's important to understand the difference, and I'd recommend sticking with the REIT with depreciation advantages.The Tax Cut and Jobs Act (TCJA) includes a 199A deduction and applies to certain income from pass-through entities (including REIT dividends) and allows individuals to take the 20% deduction against REIT dividend distributions that yields an effective tax rate of 29.6% or 37% (80% for upper bracket filers).

We can apply for conditional use permits, or we can declare the new unit through zoning as long as it meets all requirements. 

This is the breakdown:2 tenants on month to month leases ~$250-$350 less than market1 long term tenant (15yrs) is now on month to month lease and is paying $1500 less than marketAfter consulting with a couple of people and doing some research, it sounds like anything over a I should apply banking rent raise and submit a 60 day notice (all of these units fall into that category).

Out of the many programs I've been involved with his is one of the few  I can truly say is worth the money. he's smart and knows RE.