The IRS does not allow you to convert rental(passive) income to earned income.

We own 3 condos that were converted from a triplex to condos during our ownership.

The only places that seem to rent for over $1,000 are high rises and converted old mills that have been converted to big lofts, both of which are pretty unattainable. 

I assume we would have to convert this when we do settle down and buy a house that we will live in.  

The property has comps that are on the market right now that are selling for around 200k with pasture land which this property I believe could be converted to.

It's been on the market for over 60 days, they are asking $179,500 for a 6 unit building, which appears to be a big old home converted to an apartment of sorts.

In non-recourse there are carve out provisions where if the owner takes all the rents etc. and doesn't pay the mortgage then that would convert non-recourse to recourse.Most CMBS lenders do non-recourse.

The first one I bought as my primary residence at 5% down, did some minor work to it and then converted it into a full rental.

They could be converted to one bedroom apartments, but this might take 5 grand each or more.

In that time:We did a complete re-plumb and moved the laundry room inside the house.We re-wired and upgraded all the panels.We completely gutted both bathrooms and re-did them.We replaced all the windows and doors.We gutted the kitchen and put in new tile, cabinets, granite countertops and appliances.We repaired the roof and converted the outside laundry room into a garden shed.We re-did all the floors with cherry wood, tile and carpet in the guest bedrooms.We re-did the HVAC with a new unit and air handler and moved the air handler out of the master bedroom (not sure why it was there) and into the hall closet to free up closet space in the master.We replaced the deck which was rotted, landscaped and removed a dead tree which definitely would have been considered a hazard.And e took a strange room addition right off the living area and framed it into two rooms, a study and a laundry room.Thanks everyone for reading, and stay tuned for part 4... the finished product.