You are going to have "seasoning" issues trying to take cash out.

was helpful, and even with him it took several days to get my issues resolved.

I want to stay focused on the issue at hand: when purchasing a $500k property is it normal and reasonable that the seller provide historical income and expense information?

Zoning should not be too much of an issues, but uses may alter parking requirements. 

Just wondering what the implications are of changing a single member LLC to a multiple member LLC as far as current depreciation, basis, carry forward losses and any other issues. 

There's no benefit to anyone if they can’t rent the rooms, so your interests are their interests, and they're looking out for you - they actually recommended I back out of the first house I put an offer on due to foundation issues that they weren’t comfortable with.

If so, would this still cause issue with the S-Corp tax rules?

There's a ton of information available on these forums if you're ever unsure about anything, take a look around, chances are another person has encountered the same issues and share their experiences on here.

I-if it's "big expense", I get ahead of this issue by whipping out a receipt book (you can buy one at any store like Target, Wal-Mart, Staples, Office Depot, etc) and jot down the work that was performed, materials, hours, amount of people, other expenses, etc.

Congrats and 2 doors instead of 1.Great Job.please reach out about anything related to tenant issues or maintenance  issues.