If a redesign into a 4-plex would be allowed, you also need to verify (also with Planning/Zoning or possibly Engineering) that you will not get slapped with massive IMPACT FEES for adding toilets, sinks and showers......and possibly electrical loads (from the monopolistic electric power provider).  

Two of the roommates are moving out. weve got one more roomate to find. the problem:the fourth room area will occasionally flood with ground water when there is a bad enough storm, about once or twice per year. like, last monday when i was showing the room to an optimistic, potential roommate (who then backed out of the deal, after seeing the water starting to puddle.)current roommate living there is a CHAMPION and smilingly puts up with it for the massive discount rent he pays while living this close to downtown dallas (<10m). the landlord:Knows about the flooding, we've told him via email (not certified mail, yet) and he did not do anything to solve the issue. there are also other issues in the house (like i said, old) like the gutters falling apart, balcony wood rotting, foundation issues, etc. he simply will not put in any money unless he has too. 

It also helps to buy during a major recession with a lot of foreclosures AND it helps to buy in an area that is likely to see a massive run-up in values in coming years.

My father in law has a massive chunk of money doing nothing in his savings, and I've thought about the same thing.

Repairs (no massive rehab) that have been done post-purchase have come in darn close to the projected cost.  

Also kudos to you for MASSIVE ACTION!

so say 10 million .Well who are your buyers for 10 million.syndicatornew crop of hedge funds   ( and there are many out there smaller like 30 to 50 million size)1031 investor  so any of those are going to really look at this more as a cap rate type purchase and they will want a deal... plus financing could be very tough so its cash.. so in real life a portfolio like this gets massively discounted to move all at once.Succession plan to children is alive and well in this model.

Any commission-driven business has massive failure rates, it's the only way to overcompensate (I know, loaded term) those who are hyper-successful.

Nationalities tended to stay together, and influenced the neighborhood in massive ways!

In short, there's massive disconnect on what is considered a "good deal".