To sell direct, would I have to formally discontinue my contract with agent then procure FSBO documents to conduct a direct sale?

Building department has no documentation to back this statement up except a CO that was issued to us at the closing stating it is 2 units by them.

First step is to consult with your attorney and review your leases and your loan documents to make sure you do everything the correct way and in compliance with you RN loan obligations.That being said it should be on a case by case basis.

Not sure on the volume of rentals you fill, but we use Docusign for any document signing and it is a great program.

If they then fail to pay, document that they were both employed, allowed to continue employment while working at home (your property), and issue a Notice To Quit. 

Do your research and get your documentation straight, it is easy-peasy. 

I'm mostly worried about risks associated with the fact that it was converted, but not documented as a four-unit.

@Chris Arce, You want to be careful to document your intent. 

This is what the documents contain:To whom it may concernProperty located xxx...Seller has not collected any security depositfrom Tenant.

The IRS looked at 10 years surrounding the year in question and everybody determined that the records were so poorly kept and that what little documentation that was available was indecipherable, so they couldn't determine if any year's filing was accurate.