There are many who do this sort of thing.

I am probably not going about getting my comps correctly because I don't know what kind of condition they were in when they sold but they are on the same street but after further research the one that sold for $36,000 is actually about 350SF larger.

Building department.Is this sort of conversion common in the area?

You are a cash buyer when you find something after that or at least have the down payment if it's something larger.

This is pretty informative discussion that you may find beneficial as you sort things out:https://www.biggerpockets.com/forums/51/topics/527...There are several of us who specialize in Solo 401k and are active here on the forum, you should reach out and speak in person. 

Even at 10 yrs will have a small positive cash flow of 200$...my question is being my age should I drag out the loan 20 yrs to have a larger cash flow using that money to cover repairs and possibly invest in more properties or pay for it as quick as possible

When I looked into it, I was told it works much better on larger buildings. 

Even for cheaper OOS investments, you want a larger cushion for expenses.

Take loan2) You will buy 3 units using 1031 funds and loan 3) Buying a larger unit will help you leverage which will in turn increase rental income 4) You get live in one unit and tax/interest portion is a write off and when you sell gain is tax free upto 250K Your accountant should be able to split this type of transaction. 

@Joe Papp same sort of boat as you.