As a side not we planned to use a line of credit from the same lender as the down payment. 

@Nicholas Frugale - CT just changed the law and their are very specific requirements about screening tenants and providing them a receipt which shows the amount paid for the screening report.  

Here is link to direct bill: https://leg.colorado.gov/sites/default/files/2024a_1098_sign...Basically now you need 90 days notice for non-renewals with specific reasons so I wanted to hear how other investors are changing leases to take into account this new bill.   

We spoke to each tenant and gave them a letter explaining our potential plans. 

However, consider whether you are willing to manage the additional regulatory requirements and the specific needs of Section 8 tenants before deciding.

The city gave me 3 options: 1) return the unit to a garage, 2) get an architect or draftsman to draw up the building plans and then pull permits, or 3) get a structural engineer to "stamp" it and say that it's up to code.

Make sure to spend some time studying your state specific laws as the state exam is harder than the national exam....in my opinion. 

@Leslie Cunningham this is such a specific niche that it might be hard to find someone that specializes in it. 

What should I tell them my plan for the funds are?

Within the next week, I had a plan to expand out of state.