It's a niche with its own quirks that you have to understand and be prepared for.

Taking away the garage from the existing tenants will lower the rents on those units.Currently they are:4 bed 2 bath rent = $2,000 3 bed 1.5 bath rent = $1,600I think the 4 bed 2 bath is the one with the partial conversion, and three units might look like:3 bed 1.5 bath = Rent $1,500 (no garage)1 bed 1 bath = Rent $1,1003 bed 1.5 bath with garage = $1,600Don’t be misled by the 6.6 cap rate in the listing, they are just using gross rents which is incorrect. 30% (25% expenses and 5% vacancy is standard in our market), and this is really a 4.7% cap rate.

Don't propagate incorrect information.

I bought this property below market value so I knew going into it the house had some quirks.

Thank you all for your help.This is a great forum.I'm sure I'm not the only person in this situation; and equally confident there is plenty of incorrect information and confusion about this out there.Thank you again!

To this, the two trouble-making unit owners got a letter of their own from their own attorney which basically again cited the condo-by laws without much context, and were factually incorrect as well.

Again, its usually the real estate investor who is focused on anonymity and has a spearate management LLC without any legitimate reason who is in a position for their LLC to be pierced because they don't have an understanding of how their LLC's should be operated and are likely operated incorrectly.

Liability created is more than just home ownership, it's also you making your own repairs, negotiating leases incorrectly, not fixing things in a timely per the county/state rules, etc., Too much of that kind of exposure. 

I'm sorry, but that is incorrect on its face.

Then you can adjust accordingly.Second, and most importantly, your calculation of cash-on-cash return is incorrect.