A lot of investors overlook the deals/opportunities that are already easily within grasp of their existing portfolio.Your analysis seems apt to me, obviously the 'your time' is hard to quantify - I'm not sure that the jump from 2 to 3 bedroom would enable getting less needy tenants - at least with what we're doing - I think this would actually typically be the reverse if I had to generalize. 

Tenants who think you are their 'friend' will start demanding more for less and assuming they can contact you and make requests more often than they would if they didn't know their landlord.Plus, if you feel an emotional connection to your tenants you could get taken advantage of financially - agreeing to rent for less than you should, giving the existing tenant a sweetheart deal, etc.IMO business should be separated from friendship!

It isn't a neg am loan since those don't exist any more and didn't last year either so, none of those scenarios would work for how the balance could be twice the value (Or any factor above the value).The only thing I can think of is that you don't have a copy of the appraisal done when the loan for $3.2MM was done.

I have been told I need a business license to a letter of existance. 

If they have it the city will tell you the worst soil type and the structure will just have to adhere to those regulations.

Guidelines and regulations change over time, so you don't want to be reading outdated information!  

The City of Charleston has had the hardest time with their regulations, but I think they're nearly done with their proposals and will be enforcing some rules soon.

The pickings are going to be really slim or non existent to find a SFH in the Ocotillio area. 

@Colby Mulry Depends on your overall financial situation if you'll need the additional protection a LLC provides.Search 'LLC' and pick from the hundreds of topics that exist on this issue to read.

I do not have any existing relationships with brokers, as I am just starting in this area, but I am working on finding the movers and shakers in my market now.