@Frankie Lotrec if you have an existing loan on the property and you plan to legally convert from a 4 unit to 5 unit , you should check the loan documents because you’d essentially be converting it to a commercial property, since 5+ units is considered commercial and subject to different appraisal approaches and so it would rule out the property being considered for purchasers utilizing residential financing.  

If you’re doing a straight forward investment property purchase, I recommend you try to connect with an investor focused mortgage broker or lender.

Is it not so much the fee for filing that makes it prohibitive but that the equity offered rules out the viability of being a GP in a registered security this way? 

Asking in the correct forum will get a better response.Read the RULES!

Asking in the correct forum will get a better response.Read the RULES!

My advise is to look at property online and see if you can talk with an agent first to see what the rules are for that state.

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It's a super affordable real estate market where you can still find deals that hit the 1% rule anywhere from $120-180k for a single family (or $200-250k for a multifamily) purchase price.

Of course these are West coast rules  CA OR WA.

I believe after the holidays the other unit will go quickly.What is the rule to refi into conventional loan?