Property I'm interested in:4 unitGreat locationAll 1bd/1ba with a large dining room that could easily be converted to second bedroom leaving plenty of common space.3 of the 4 units are currently rented at $550.

Let said i want to convert a 4 bedrooms for family into 2 bedrooms unit for expats to create a large space & stand out in the block because the area allow me too and create a certain niche and competitive advantage.

I would like to convert it into 2-3 apartments (like many others on the block) and keep it as a buy and hold.Would it be possible and logical to offer him a lease option for a specified time period, while I renovate and sublet each apartment until I can pay off the balance. 

Also in progress on converting a 1/1 to a 2/2 in a great neighborhood and will then rent that for cash flow. 

@Cameron Skinner Thoughts on your S-Corp/LLC converting passive income to active scenarios:First, he'd still have to demonstrate material participation.

The ceiling looks similar to  this one -  http://smallhomedesignideas.com/images/a791250a0ea...Once the original roof is visible it will look similar to this-https://www.flickr.com/photos/16863012@N06/1427831...Same shape of house, carport in the same spot except that mine is a smaller carport and has been converted to living area.  

I am converting a single-family home into a 2-unit apartment, and they want a Market Study and Traffic Study and I have no idea how to get those.Thanks!!!

Rather, since the tenant didn't return the proposed new lease, it has converted to a month to month tenancy, albeit at a higher rate specified in the cover letter of the mailing.  

With this level of scrutiny, we may convert from annual to seasonal leases and VRBO/AirB2B on the 4-plex for greater gains.

I understand to do so, I will need to convert it into a self-directed IRA.