This was very insightful and I will look into the options a bit further.

If approved, you’d already be in a position to add units, whereas others might still be navigating the zoning process.That said, rezoning takes time and isn’t guaranteed, so it’s worth weighing the cost, process, and likelihood of approval.

What other options would be good?  

Because you are not changing the tax return that reports the activity of the property.But... the IRS holds the position that Husband/wife LLCs can only be disregarded in community property states. 

It's inspiring to see how overlooked opportunities can yield such positive results.

You've only owned it six months, so you probably haven't dealt with vacancies, maintenance, or capex, but you should be setting money aside for those things.Your partnership agreement (if you have one) should address exit options.

So lets hope something positive happens, but also make sure to plan for the worst case as well.

If they do need financing, then speak with your lender about their new build financing options. 

Example: you can option to have a fireplace with two windows on either side.

I reviewed about a dozen options.