Should the bank ever need to foreclose on the property, they can’t sell the building without the land or the land without the building.

I plan on doing the following:- Full gut demo - done- Extend third floor to rear of building envelope and raise ceilings.

Then build a team of professionals around you and take action. 

And now with rates being high, plus many areas overbuilt with new apartment buildings, I’d be careful with unknown areas, and also what you read in the media about “hot” areas, up and comers, etc.I was in a similar situation to yours a couple years ago.

I am looking at a 5 unit building that I want to do a condo conversion on. 4 units would be vacant 1 has a rent controlled tenant in there who does not want to move.

LTR is stable, slow, and risk is low but potentially not as much cash (right away).Comes down to what goals you have and your risk threshhold - I have friends in CO springs who do STR and MTR, and works out great - but also have folks who LTR in that area and it pays for them self and it a great way to save money in places like taxes and build equity.  

The reason for this is there is certainly a lot of heavy lifting of resources required by a property management team to bring on a new resident including rent collection, setting proper expectations, accounting and building a positive relationship in the first month.As far as the quick re-rent of your home, I was hoping that would be something in which you'd see the value of working with us. 

@Sara Donohue I don't recommend buying land if there's not an actionable plan whereby the buyer can build.

With this additional expense, that would mean depleting the savings we’ve worked so hard to build over the past few years.To add to the situation, my wife and I are expecting our first baby in just two weeks!

In my opinion it comes down to finding the right fit and building the relationship.