Ravi,A Personal Umbrella policy gives you an additional limit of Liability if the limit on your homeowners, auto, boat, or rental property (1-4 family) is exhausted in claim. 

After looking at the difference, it would be over 400-$500 additional in principal and interest a month.

I was about to start the process to get a retroactive permit but realized the additional cost of a new exterior stairwell (metal) and architecture fees is almost 30kIm starting to weigh the options of either full tear down with a new 4 unit construction or separate building in the front of property (current is set back thus the extra costs to permit)  or adding a 2 story 2 unit addition connecting to the old propertysorry this post has become 2 ideas i need advice onif it deconvert can i use it as an inlaw suite with 2nd floor unit or a duplex up. 

Tread carefully wherever you buy as there are unforeseen HOA management risks in addition to the special assessments for delayed maintenance and building insurance skyrocketing. 

Additionally, and importantly, I’m not buying large apartment buildings so the effect on my and my clients’ portfolios will be muted.

This takes a little more work, but it's the fairest and reduces the likelihood of tenants that squander utilities.If you choose #2 or #3, there are considerations:Start with an average.

I am paying additional taxes on the rental income, as well as business fees.I assume this is the part of the tax code we're referring to: https://www.irs.gov/taxtopics/tc415, and this is the line:"A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as their main home and pays a fair rental price."

Can my offer have contingency for phase 1 passing in addition to rezoning approval?

If you do a search for LLCs on BP, you'll see a range of opinions - it depends on your individual situation and risk tolerance.For 2024 if you have an LLC you have to file additional paperwork with Corporate Transparency Act or face fines from the IRS.

And by evolving into Out-State holding's, now your reducing risk exposure from diversification of market deployment.