As far as how it has worked out so far, we are extremely happy we did it.

You loose a ton of efficiency and suffer an extremely reduced lifetime with only a fraction of an inch of scale.

I can see getting some fee for your time to rerent and lost rents, but 3X is the most extreme I have heard, leading me to believe it wouldn't stand up in court. 

Definitely having a 2 unit is the way to go though extremely hard to come by and competitive.

In my opinion, $200 per month, for a property in an extremely sought after area, with a tenant base that is extremely consistent, with military and government in the area not going anywhere, is a reasonable investment to stick with.I agree with @Russell Brazil, that you should hold the property in your portfolio.  

I was reading about it and it seems extremely similar to the 506b except has a limit on amount raised.  

My rent rolls would seem extremely high for the area if it was assumed that all the money was from one apartment, but it is truly income that is steady.

From what I understand, best practice in Chicago (which has an extremely pro-tenant system of laws) is to have the tenant sign an acknowledgement saying that the Lessor has disclosed any code violations.

I'm 23 years old entrepreneur and extremely interested in Real Estate Investing. 

Only offer buildout for extremely qualified (look at financials) tenants on a long term lease and build it into the rate.