So when someone "converts" a hotel to an apt, they're normally just adding a small kitchen area. 

I purchased a rental property in 2018 that was a totally normal real estate transaction with no existing easements or irregularities mentioned.During the reno I found out that back in the 50's when the house was built, the city (presumably) had run the sewer line out of my back yard and tied it in with our neighbor's sewer line, and then run it out to the main line on a side street, rather than running each sewer line up to the main at the street our address is on.

It is no longer a couple or small family situation that normally books a 1 or 2 bedroom cabin, but rather an extended family, church group, other types of groups, etc... and just based on the different individuals schedule of all the parties included, it would be hard to do a lot of last minute booking I would think.  

Can't tell you much about Minnesota attorneys, but normally the best way to find someone is to contact the bar in the locality you're looking for, or to reach out to some agents in the area to see who is on their team. 

Hey Scott, i am not a lender, or a lawyer. however to my understanding, any note you are on will count towards the limit. my partners and i normally keep the deed in everyone's name and then take the mortgage in only one persons name, this allows us to get around the issue you're describing. i do believe getting the 10 loans would make it more difficult to get the primary loan. however you might be able to find a local or regional bank/credit union that keeps the note in house, which would keep it from counting towards the 10. or be available after you've already reached the 10

They will check all the normal stuff municipal inspectors look for, such as detectors, leaks, missing or broken doors/windows/screens, etc. 

You can't deduct any thing while it's your home- and I would freeze depreciation for that time since it's being taken out of service for longer than normal renovation time for your purposes. 

I would want to hear a lot about the "why" and then a lot more about the "how", specifically "How could I, with normal income and no experience in MF investing, actively invest in MF? 

There's also the additional hurdle of cataloging everything you're furnishing, and any disputes you may have at move-out over condition, what counts as normal wear and tear, and things like that.

Otherwise just realize that with risk comes reward and it is totally normal to be nervous.