Although I guess you can't technically do that because the 3.5 is only for FHA and you can only have one at a time, correct? 

While technically you can do so with 48 hours notice, it sounds like one or both units are being difficult so I don't know what you're going to gain from it.

The benefit is that you got to put down 3% down because it's technically an owner occupied property vs 20% down for a rental property. 

My lawyer thinks he was trying to sell the property and pocket the money since it was under his name only, but technically he can't sell it until things are settled.So at that point I have already spent money on loan application, appraisal, inspection, survey, even home owner insurance, windstorm insurance, flood insurance are all binded and his wife whose name is not on the title can veto the sale and there is nothing I can do about it. 

Now that you have the background, here is the project I am thinking of:I have space over my SFH garage and 1st floor to build two studio units (technically one ADU and one bedroom expansion to be converted after) 1100sqft total.

I have gone through this process twice now on my homes in Riverside, IL, and both times I got the value I wanted by doing the little things that don't technically improve value, but that improve someone's "feel" of a home.

However, I would have the wife sign a new lease as the other one is technically broken.

This book dives a lot into the qualitative factors of the industry and the many players involved, thus giving one an understanding of the true interconnectedness of the industry and how important and valuable networking can be.Bottom Line: These 5 books cover financial analysis, purpose, mindset, technical jargon, and a high-level overview of the industry.

@Alvin Uy technically my property with the mortgage is not cash flowing but it is covering actual expenses.

Which means if you fall back to renting by the unit (maybe even to non-students), you'll have a harder time cash flowing.I'd urge you to do a lot of research in that geographic area and especially for what houses on the same street are renting for, as a lot of houses in RI are sold as "near PC" or "near RIC" but while technically "near" (whatever that means), the houses really aren't in typical student rental areas.So I feel like some of those houses are trying to take advantage of student rental by the room price bumps, while not necessarily being easy for the new owner (often a newer investor) to rent out to students.