I then plan to do this again or maybe 2 more times depending on the ability to stay under the VA entitlement cap. 

What kind of calculations should I use to determine whether or not this is a good idea?  

Hello,I'm looking for guidance on how to determine fair rents for a commercial property with two tenants.

The legal action is against people who have no intention of closing or no ability to close the purchase tying the property up with the seller believing the buyer will close when in reality the transaction will only close IF the “buyer” finds someone to pay more than he is paying.  

Also, was there a background check on the tenants possibly having criminal backgrounds and or background check to determine if the tenants had ever been evicted in the past?

I appreciate the ability to teach out to you with questions!

I'd start by getting a soils engineer to look at the soils around the building to determine what's gone on to cause the heaving or settlement.

Then a Civil Engineer, an Appraiser to determine what having a four unit would be worth, then a loan using the evaluation.

@Jason Tucker  you need to add in your utilities, common area cleaning, and turnover costs to determine if it makes sense. 

Because they aren't traditional tenants in the sense with a 1 year lease and to determine fit for the house, I like to start everyone on 2-4 month leases and see how they perform.