Bottom line, legal entities come in when your net worth becomes significant enough to create firewalls between individual pieces.Avoid large banks and google local banks and credit unions; with a decent credit score you will not have a problem to get a loan in your name on a cashflowing property.

The HOA was dissolved many years ago leaving the condos without an association, but they cannot be classified as multi family because they don't meet the current code standard of having a firewall between the units.

Do you have any idea if it's feasible, or how much it costs, to add the firewall in the attic.  

I have gone to the planning/zoning and they said I will need to either install sprinklers or have fire walls installed if I want to change it to a 3 unit building. 

If you go from SFR to apartments, you won't think to check insulation and firewalls as a due diligence item.

I've heard some horror stories about another investor getting into a mess because they called an inspector out and they made him update the firewalls in the walls. 

Financially it's similar to how a firewall acts among servers.

Firewalls?

@Lamont Marable find an investor friendly agent and you can get all of these questions answered for free from Someone that wants to earn your business.Adding units is extremely difficult if there is not already a fire suppression system in place or fire walls present.

-Create another kitchen-Create another laundry room-Create a firewall in attic and main level -Add 2 hvac units with duct work-Add an additional water heaterOn top of all that we had to remodel everything and fix all its issues to make it an attractive rental.