Sounds like a "Subject To" deal if im reading your wording correctly......

Something with high execution risk like ground up construction or heavy value add, is going to be much more susceptible to a downturn than something like a core real estate investment that has much lower execution risk.As a conservative investor, at this stage of the cycle, I don't invest in anything unless I can run a recession stress test on it.

It sounds like a good strategy.

From the comps your giving it doesn't sound like a deal.  

@Matt Smith This sounds great, congratulations! 

Think about what your goals are is it financially sound decision? 

It seems like they haven't been there since oct 1st( no sounds/car/lights/ water shut off) .

Seems the terms are better than a commercial at this stage (1st property) rather than putting it in my llc.

I will share that it is difficult to convert any SFH or duplex to a triplex as you go from IRC building code (1-2 family homes) to IBC building codes which are much more restrictive as it is for any commercial building which is any 3+ unit including 100-200 unit apartments so there is sound and fire ratings that have to be adhered to.Hope this helps.

A few months ago, I posted an article on a flip that was in the beginning stages in a historic district of downtown Tucson: https://www.biggerpockets.com/forums/311/topics/55....