For example, when I called the Zoning Department about whether or not I could have a daycare center on our property they said the operator would need to get a Special Use Permit as part of their application for their business license.

This would be a refinance is that right so I should speak to the refinance department?

Like you said, it's working for someone so I'll be curious to hear some others input.My thoughts exactly - the $800 / m is not net as you have to figure in the dues - which can be a major hastle .One other factor is if 50% is rented  and / or more than 10% controlled by 1 entity - owner then this project will not qualify for FHA/VA financing which is key in condo market.

Fret not, you are probably one of the vast majority of REI's.Before you can decide what to do next, you must establish a set of financial goals. 

might be a little tougher to find a multi and drive time would be 20 to 30 minutes but major traffic not as bad. 

We are experienced with home renos and aside from rough in plumbing(if needed), major electrical upgrades and drywall (out of utter distaste for it) we will be accomplishing all renovations and upgrades ourselves.    

The tenant claims water is leaking from the shower door and it's happened so long that it's now ruining the floor and creating a major maintenance issue.

The major things like plumbing, electrical, and siding are all brand new in 2010 and the roof still has a good 10+ years left on it so my Capex will probably be put towards a new roof on the buildings come time. 

Details of the deal:  6 bed, 2 full, 2 half bath at 3,154 sqft.We are planning on converting into a 2 - 1 bedrooms and 1 -2 bedroom apartments, which will yield a monthly income of 3,454 in rent.Besides dealing with License and inspections for rezoning which is the project for this week, if 3,000 isn't paid to an attorney to handle these affairs, acquiring the funds to complete the rehab will be the next major obstacle.

Third, I feel that the market will drop in the next couple of years and would like to be prepared to purchase rental properties when that happens.Again, it is a major decision in my life, I really don’t want to screw it up for my family.