In addition to being comfortable land lording, I enjoy the fix-em-up’s around the house and actually converted my current Milwaukee home from a 3-1 to a 4-2 and added 700sqft with a finished basement.

For now I think my focus is value add duplexes or properties with 2nd structures that can easily be converted to secondary units.

For me, it was an issue of determining if they were really nuns, not some imposters.BTW, the reason for the nuns renting is the convent which originally housed 500 nuns, by then, housed less than 100, and they are converting the building to offices for commercial rental.

The house has an attached garage that was partially converted to living space and never finished. 

The roof is newer and the attic was converted into a master bedroom for one of the units.The inspection period has ended already so I'm not sure of my options from this point with any further negotiations. 

Or converting into a series of new primary residences isn't feasible. 

Yes my plan was if I brought them in and they didn’t sell in 3-4 mos to convert to rentals but this new piece of information is extremely helpful in my analysis.  

If they are maturing and you aren't in a position to buy some real estate right away, another option is to convert them to regular stock (either in your company or another) and then hold them long enough to benefit from capital gains tax rates (note you still pay income taxes at the time of the initial sale).Good luck - it's a good problem to have!

specifically, the Owners did not have enough funds to fix the septic prior to closing, and local contractors don't do work at risk, so we converted (after we knew we were all in) the earnest money into a non-refundable deposit.

For example, in a flip situation I think there would be more value in converting the large half bath upstairs into a full, but in a rental situation that may not have as much value.