If I rent out three bedrooms at 600 each, that is double what I would be getting.However, it seems that renting out rooms separately isn't permitted unless you actively live there with the property as a primary residence (not sure on this point).

So, I’d dig into the numbers before making a call.Local zoning and code regulations: Converting a multi-family property to a single-family unit might require permits or specific approvals, so check with your local building authority to avoid surprises.

Did you obtain all necessary permits and licenses?

We'd need to pull permits to submeter the property, for example, and my understanding is it'd likely be denied due to not currently being to code.Has anyone ever dealt with this before?

@Eric Fichera Buy A/B  located properties, keep up with all local permitting & licensing, use a well drafted and fair lease, don’t unreasonably withhold deposits and be a responsive landlord or hire a responsive PM and you won’t have anything to worry about.

Engineering , permits , stormwater management system , clearing , reforestation fee , sediment control , and landscape bond , all this would run you around $175K .

Also, make sure you check if any local licenses or permits are needed for real estate investing.If you’re comfortable with the process, doing it yourself can save a lot of money.

Furthermore, have you considered and run the numbers assessing renting the units as an STR if permitted in the neighborhood and County/City? 

We find it highly unlikely that the Legislature, having demonstrated its strong commitment to the protection of tenants from unjustifiable evictions, would have intended to permit the eviction of an exemplary tenant solely for the reason that the federal government has found her qualified to participate in the Section 8 housing program pursuant to which the government pays a portion of her rent. ”)

Have you accounted for all closing costs, permit fees, and other transaction expenses in your budget?