Doing a Prep, seal, coating may be your easiest and cheapest option!

I am a first time real estate investor looking the following property : https://www.redfin.com/OR/Forest-Grove/2418-Cedar-Cir-97116/...its a pretty large duplex in Forest Grove OR,  the trick is though, its on a lot zoned for a 4 plex so I am lookinginto house hacking, converting into a triplex, then living in one unit while renting out the remaining two unitsThe left garage has been converted to living space, with a living room, half bath, a laundry room with a sink and some counters/cupboards and a bedroom, it is a part of what was an existing 3bd unitIf I were to acquire the asset, I would first attempt to convert that space into its own unit The line items as I see (be in mind, I am totally new to this) would be to >put up dry wall where the door to the rest of the house is,>add a shower to the half bathroom >install a water heater in the adjacent 3bd unit> install a kitchen in the laundry room, (stove , oven , sink, counter space)>add a shower to the half bath Assuming I can convert it to a 3plex, I could at-least cash flow on my investment after I leave My plan would be to put minimum down payment of 3.5% (FHA loan) that way I can have a decent amount of capital free to do the renovationsThe only concern is when I crunch the numbers to get my ROI, I have no idea how much its going to cost to convert the additional living space to a third unitAny experienced investors here know how I can estimate this before I try to make an offer?

$200k is almost half the median income.

If the seller keeps brushing you off, I would follow up and try to get them to meet you at least half way. 

But for cheaper area in Indiana somewhere or somewhere with less appreciation then IO product could be useful.When people understand how these loan works (and visualizing it) following the appreciation chart (for example using ZHI) this is the real easiest wealth generator. 

The property consistently attracted quality tenants due to its excellent location and the scarcity of studios in the area and was never vacant for more than half a month.

For those of you who are familiar with how to open an entity in your state, how to stay self motivated, how to make effective phone calls, and just operate in a professional manner, the first half of the training may seem slow/repetitive.

The easiest to execute will be the single family or multifamily long term rental.  2nd easiest is the Short Term Rental.  

Since you are house hacking, the goal in year 1 is to make sure at least half of your total expenses are paid by the tenant and in year 2 you should be able to cashflow a little.

We turned it into a duplex and it is half-STR, half-LTR.