I'm not in the 5+ space here in SD but I do have some small MFR, and work in the space for entitlements and permits etc.

Among the factors you could consider if you're looking for appreciation:* Markets with strong net population growth (here are some Census data graphs of population by MSA)* Markets where incomes are increasing (personal income data by MSA)* Markets where there's limited new housing supply being created (you could compare monthly building permits by MSA to total households by MSA)Here's a full guide on how to analyze a market.

They will tell you what's allowed without a permit.

However, I want to preface this by saying this is definitely not a small undertaking in terms of cost or work involved, and will most definitely require permits and inspections with both your municipality and the power company.Specifically for the electric service, my recommendation is to upgrade to a 3-gang meter socket: one meter for each unit and then one for common area electric. 

Covering them with vinyl is a good move Whatever you do, make sure you get a permit; inspectors over do it when it comes to asbestos, they'll stop your project cold and make you air test everything.Hope this helps!!!

It's a full-day, virtual retreat to set goals in all areas of life (money, career, health, recreation, etc.) and can be done from anywhere.I am not a goal setter.

Who handles permits, land use zoning, etc.? 

Duplex have different zoning that may permit additional units.

I'm more worried about getting permits for rehabbing, and when it comes time to selling (not a flip, but if ever we decide to sell that property), it could be an issue.

However, be sure to get to the codes office early with permits, it can be a nightmare with that office.