Availability of funds is one reason some buy NPNs.

I paid tax on it and mowed it about every 5 years so maybe put 10k into over the years.. deductive reasoning suggested city does not build and full blown interchange to go to nowhere. 

For multiple reasons it was a slow, dirty but eventually profitable process.

Quote from @Patricio Acosta: I finally found the perfect flip in Coronado, San Diego—the agent hasn’t received any offers, the listing price is reasonable, and the home has huge potential.

If you need an LLC for tax reasons later, you can move title into an LLC later for a couple hundred bucks.

You don't want to give the insurance company any reason not to pay out on a claim. 

Starting to get competitive though for investment properties because of that reason you have more and more people entering the market from out of state.

I would ask the insurance company for more documentation on the reasoning. 

The reason I say this is that with a 5+ unit a lender will evaluate based on NOI and a cap rate, so adding a 5th unit COULD (or could not) substantially increase the value of the building and make it worthwhile to refinance and pay off the existing loan (that is tied to the "old" quad) anyway.

We built the system the way we did for very specific reasons.