The attempt to convert the zoning invoked a ton of rules that don't seem to apply for office, like parking, distance to adjacent buildings, rights for neighboring businesses, etc. and when I tried to find ways to mitigate, they existed but again costs too much.Overall it initially appeared like a no-brainer but I made the mistake of only focusing on what I knew, meaning the reno and renting it, and having plumbing to create bathrooms and kitchens, and enough amps for electrical, and maybe splitting meters for utilities, but that other stuff that converts from commercial office to residential was a very strange, all unfamiliar and would have been very expensive.Might not be the case in your deal but probably worth checking out

The way to mitigate the first concern is to try to have a good idea of what your refi is going to look like before you buy. 

Welcome to Phoenix @matt @Matt YatesNo need to have analysis paralysis, there are many ways to mitigate your risk.

Does anyone have experience with Radon mitigation or have rentals that require radon mitigation system?

Are there other potential concerns that you foresee arising and do you have recommendations on how to mitigate them?

Insurance companies are a business and inside of that looking to mitigate costs.

@Loki Chris  Have you considered using a professional property manager to mitigate your concerns of going through an eviction. 

Absolutely don't do any work until approved by your insurer unless its mitigation (ie tarping a hole on the roof to prevent further damage).

My idea again is to potentially cash flow the laundromat side, which would mitigate some of the risk involved. ...there is also already an offer on the property, so time is of the essence. 

It can be very rewarding and enjoyable to build a project and create your own vision rather than having to work around somebody else's vision so definitely don't be afraid to move forward, just make sure you're properly mitigating risk based on your own circumstances.