So I am curious what are the costs that are associated for converting these over to sewer and public water?

Has anyone ever had success converting a nonconforming triplex to a “conforming” triplex in Minneapolis?

Yes, You can convert the rental income into income subject to Self-employment taxes via management fee and fund your IRA. 

It would require a fair amount work with bringing water over, adding the drain and converting the closet.  

Or you would have to have them find something with like a wet bar that they could convert.  

I got 2 units up in Dec, converted 2 to1 and put it online in Feb and am just finishing up the 5th unit by next week .

*I am looking for guidance primarily in the financing portion of this strategy, but if you would like to proof it for other items to be aware of, be my guest.The idea is to buy a single family house near Fort Worth with a 2 car garage, convert the garage into a living space including a kitchen and bathroom and remove the attic space to be replaced with a loft.

Welcome to BP, @Bethany Rogers I would say that duplexes are feasible for most people in the A2 market, and you can sometimes find houses that are currently single family but can be converted to duplexes due to the zoning or the ADU ordinance for owner-occupied homes.

It's my understanding that you cannot live in it, either the one you're selling or the new one, although there are rules where you can 1031 exchange but then years later, move in and convert it to a residence, although I don't know how that works for taxation purposes.  

Purchase price: $240,000 Cash invested: $48,000 Primary Residents to be converted to rental What made you interested in investing in this type of deal?