During the Great Recession 1) we converted one of the two units to LTR during the school year.

@Brian Garrett Purchase: $2,259,87540 units and we'll convert the office to a 1 bedroom unit - 32 2-beds and 8 3-bedsRents significantly under market, previous owner hadn't pushed rents or kept up with the units$300k in renovations to improve the exterior and renovate interior units - about half need a full reno while the other half are in some state of renovation.

I was able to convert them from a month-to-month lease to a year long lease but did not collect a deposit, which was a big mistake.

I invest in Fayetteville heavily.If you can convert it to a 3/2 (which I do often) then absolutely do it. the second bath full bath is often a big help in this market.

Brokerages do everything by check or ACH transfer because they leave a paper trail that can be traced.Banks convert cash into money orders (for a fee). 

I believe that pre-foreclosure's are currently the absolute best in terms of motivated sellers and high converting prospects.

The units are in tough shape and we'd like to finance additional money for reno & an ADU addition- I assume that we could refresh the interior and convert the attached garage space (200sqft) into a 350-400sqft rent-controlled ADU.

Try to find a 2bd that is over 1,000 SF and convert it to a 3bd - there is often big upside from that kind of move...also, adding a 2nd bath if only 1 exists is another win.

Cons:All bills paid propertyCurrent Owner has 33 other properties don't understand why he didn't utilize the extra land on this property.Poor Management so financials and rent rolls provided don't properly accurately reflect what each unit collects in rental income monthly.Each Unit leases either Weekly or MonthlyMy Strategy:Renovate all 12 Units upgrade the appliances and aggressively market each unit Rent each Unit for a minimum of 475 per Unit without the all bills paid option to lower my expensesPut a Laundry Facility on the property there is a Barn that was previously used as a storage space that I intend to convert into a laundry facility.I will love to hear from the experienced investors and learn if my strategy makes senses or any suggestions you provide as this is my first big deal I am involved in.

S Corp converts part of the earnings from earned income into passive.