When I encounter this type of client, I do everything I can to convert them into one of the previous clients.First thing I have them do is run all their income and expenses through a separate account instead of their personal account. 

If it is a legal 4-family, you should have it converted to a 5-family.

If you can find a place where the HOA or COA is flexible and you are able to convince the membership to go into development and perhaps convert the property into a co-op you could build a new apartment complex with commercial rental spaces on the ground floor and residential spaces on the top. 

We renovated the SFH and converted the garage to a 2-bed ADU.

Adding Square FootageIncreasing the usable living space of a home, such as by finishing a basement, converting an attic, or adding extensions, can dramatically raise the ARV.

Going forward, make sure you convert your lease agreements to PDF and have them backed up.

Tenant buyers that put a high option fee have almost always exercised the option and purchased the property. someone puts 50k towards the option I suspect that has a high potential to convert.. someone that does 10k much less..

Being able to A/B test MTR at the same time would allow you to know if you can convert the STR to MTR if you ever want to move out and keep the property.As for the net negative house hacks - I always like to remind people that shy away from a deal because they aren't making money that they are usually still coming out ahead if they are spending the same or less than they would on rent.Great last point.

I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).

That is the difference.The convertible equity play is just garbage.