I'm wanting to get into Multi Family development in the Houston area and have started to look at potential projects.

What are the issues to pay attention to in Kansas City?

There's a market for all that in the area.  

The mortgage I have in place has a waterfall prepayment penalty, so 5% penalty in the first year, 4% in the second year, 3%…and so forth.  

The goal here is to align with investors and educate them about the benefits of long-term strategies.

Recommend you Google "Cleveland lead paint instpection" and read what it says on city website.

I would owner occupy it so I don't know if I have an avenue to remove them so I can do the condo conversion or if I could even do the condo conversion while they are still in there.

Short, sweet and right on the mark.

But today with Dodd Frank this would be totally illegal to sell to homeowners without going through QM process. 

Megan Luckily the math part isnt too high level just addition, subtraction, some mulitplication and division but we as a community can all help you through it.Leave the complicated math for the wall street quantative analysts and derivative traders.