In Milwaukee, I'd need 2 exits from the attic and 50% of the space has to have at least a 7 foot height on ceilings.Two things you want to check: both requirements are correct, but on top of that the city is getting reluctant permitting 3rd units: 50% more occupants mean 50% more water and sewer and 50% more traffic and parking.The other issue is that the cost of finishing a thrid floor with proper insulation/ventilation will run about $50-60/sf and only makes sense if you can get strong rents. 

Properties in this location may vary in age and upkeep, impacting maintenance costs and potential rental income.

What's the cost?

The below is the closing costs breakdown the lender has provided.

Get caught with your pants down on paper first, it costs less. 

If you are in the actual SubTo community, there is no way they haven't been spam calling you and grouping you so you should have access to that inside of the Facebook page or paid groups.But, seconding @John Clark, if you are new as an investor, choosing SubTo is going to cost you a lot and get you a little.

These are 1 bedroom/1bath units, 650sq ft, priced under $700 a month so I dont think its competition from the newer buildings that cant afford to price rent so low.We maintain the units very well and have recently renovated a bunch of them with lvp flooring, new cabinets, etc.

I would not get an attorney involved unless you just want to prove a point. it will probably cost you a few thousand and I am sorry but the attorneys involved  , your attorney and theirs will settle out of court. 

Property details are below.Property 1:Cash flow: -$730 / monthPrinicipal + Interest: $1,790 / monthEquity after sales costs: $110kExpected IRR of holding: 27%Property 2:Cash flow: -$200 / monthPrinicipal + Interest: $620 / monthEquity after sales costs: $20kExpected IRR of holding: 35%Property 3:Cash flow: -$310 / monthPrinicipal + Interest: $690 / monthEquity after sales costs: $45kExpected IRR of holding: 26%Property 4:Cash flow: -$500 / monthPrinicipal + Interest: $1,135 / monthEquity after sales costs: $45kExpected IRR of holding: 16%Property 5:Cash flow: -$600 / monthPrinicipal + Interest: $878 / monthEquity after sales costs: $40kExpected IRR of holding: 16%Total portfolio:Cash flow: -$2,340 / monthPrinicipal + Interest: $5,114 / monthEquity after sales costs: $260kExpected IRR of holding: 24%

@Dan H.Most GP’s don’t allow it, especially for accredited investment offerings because the purchase must also be accreditedWe have a reg an offering and have a death and disability clause that gives an out and have had one case where this occurred at of 700+ investors.As someone else mentioned, you would essentially be setting up an exchange which would require finra licensing and the licensing costs alone would make it cost prohibitive