I've been taking a real estate investment course available through my public library and the low rates of success for renters was presented as a way in which this is a solid investment strategy.

It is a 3360 sq ft (living space) building.

Suffice to say, the deal is off and the bank is going to begin foreclosure process and most likely open bidding to the public I reached out to the bank, and they mentioned I could potentially “buy the note” from them so at least I could secure the property for my church.

Hello,I'm thinking about buying a property listed as 2 bedroom, but theres a ton of basement space and I want to convert it to a 4 bedroom.

To keep it cleanest, I would think your sibling should pay market rent for the separate business space and they get their share of the profits from the building as a whole per your agreement. 

so this means the appraisal for the refinance part of the brrrr may come in too low if i move forward with this plan.of course on the other hand the tiny bedroom is wasted space that nobody will occupy. prospective tenants who need 3 bedrooms will not apply and my time showing this unit to them will be a waste. i do plan to hold this house for at least 10 years. so i am leaning toward doing this in an effort to make it easier to rent and keep tenants.

I've been looking hard into that market space but would really like the advice of someone with property there. 

Of course if you ask worse case scenario there is always a worse case.. but then logic comes into play.but some folks are nutso about no one knowing what they own or making it hard via public records..

How many empty spaces and what work do those lots need?

MHP has 57 spaces (of which 51 trailers are owned by the park), 100% occupancy, average rent is $500/month, city sewer/water, they pay all utilities, plus they pay the grass cutting bill.