Any overdue balance is passed on to the new owner.

Long overdue but I got my first house end of July and it's thanks to this website.

I would also greatly appreciate the use of an example with some numbers as well.My apologies for the lengthy post, but I thank you very much in advance for your time, patience, and help.

my VERY brief answer is "different strokes for different folks and both can be beneficial and/or costly"....I am going to come back to this thread when I have more time to read all these lengthy replies as this is a great topic and I would like to add my 2 cents in more detail.

Rezoning is a difficult and potentially a very lengthy process and expensive on top of that but you can inquire about the possibilities at your local building and planning departments. 

After a lengthy search we've finally found a 4 unit property to buy so that we can begin our transition into the city but I'm guessing it will need a good bit of work and the 203K route makes the most economic sense right now.

I’ll fast forward.I’ve been reading around on Bigger Pockets for a couple years now, and this first post is long overdue.  

Traditionally, the economy is more resource-based - particularly in the smaller communities - and we have an ageing population (the young have been streaming to Alberta for a generation, then returning east to retire).Now about that market correction, it's been overdue for a few years, but the current trajectory continues to diverge from the underlaying economic fundamentals which should make folks more cautious when analysing prospects.

Then you'll want to think about hiring an architect and expeditor/land use consultant to kick-off the lengthy entitlement process, and of course how you'll finance the entire project.What is the lot you acquired improved with?  

Too lengthy and complicated for here.