This is the first time we are hearing about your situation.

Does anyone have any practical experience with similar situations and if so what was the outcome and how long did it take to resolve everything?

I see that I wasn't clear in my description of our current situation and our goals. 

@Elizabeth LebIf you’re starting with $20,000, focus on defining your goals and exploring the best options for your situation.

At least with the paid off property and you get yourself into a bad situation in life you can just sell it and there’s tons of equity but if you’re ever in we leverage with a mortgage in the market goes down you won’t be able to sell without a loss so it’s simple math.

Random things like this.I can only imagine if they did allow you to add all the bedrooms, they would make you also add fire sprinkler system and a commercial fire alarm system like residential assisted living. 

So I'm guessing it might depend on your state laws and personal situation. and make sure you know of any sticky items that would eliminate the protection you get from the LLC.

In this situation we have a former-tenant  hyper sensitive to return of full security deposit (when unit wasn’t returned in good condition) and we are  experiencing a few unique damages.

Like seriously, with as much due respect as I can provide to you in this situation, you guys need to evaluate what you actually do instead of what you think you’re doing.

I am in a very similar situation  @Chris Scarazzini just starting out!