This is a mindset that is deeply rooted in the fear of not believing in ones ability to manage a business so, just keep it simple and 'attack all debt' . 

. $3K/month.1) sewer line: we are having sewer root blading and re-scope again, then decide if we need a replacement. 2) plumbing: main shut-off is copper, visible plumbing in bathrooms are copper.3) electrical:  electrician coming tomorrow.

This is mostly because you are dealing with people that buy into a community to put down permanent roots and don't want to be transient (like renters) and are living in very close proximity with shared walls. 

Knowing the root causes helps.

I'm rooting for you!

Nobody would accuse me of being a hands-orf investor.However, it's in good condition, was quality-built in its time, compact enough not to worry about major underground erosion causing foundation issues, no big trees with roots to grow into the sewer line, good grade, brick veneer, heavy roof construction originally built for slate.

The factors here are several layers deep...1- The threshold decision is rooted in local ordinance and zoning...if you're in an area with tight local ordinances you're fighting with the people that live in the neighborhood before you ever reach the city zoning folks...this can go one of many ways2- ROI on the conversion...you're first stop should be with a local architect...they are worth their weight in gold when navigating a project like this and will wade through the regulatory waters much better than you...and a simple phone call may be telling to whether the conversion would be permissible.The extension of this is the cost of the renovation in relationship to the rents received...the stars would really have to align to say you should spend a significant amount of cash to convert a performing building with 4 revenue streams to serve another function (but there is more to this)...and the cost of construction (and lumber in particular) is 5 fold what it was 1.5 years ago...3- As you indicated...exit...I think the only rational reason to convert a 4-unit would be to get condo status or single family/ shared wall and sell one or both of the units to an end buyer (you are basically paying the role of a speculative developer here)...this is happening frequently in locations like Olde Towne East and Merion Village...hard to demonstrate how successful this has been, but it seems far fetched reasonable consumers would pay the same for a  free-standing SFR they would for half of a "duplex" or condo, but who knows for sure.Either way you look at it you're in a residential appraisal situation on the comparable sales approach....4 unit buildings are still "single family" homes. 

I know you will get there and I’ll be rooting for you along the way!

It sounds like tree roots have invaded the sewer line.

We love where we live so much that we decided we wanted to do whatever we could to plant roots and stay in our community.How did you find this deal and how did you negotiate it?