Your income and cash on hand will be your most limiting factors with traditional or portfolio loans.  

It varies from state to state, but in my experience it must have a traditional closet to be considered a bedroom

@Christian Sgrignoli First off, congratulations on your new investment!  

Most likely cheaper to convert office space rather than rebuilding .At the same time there is the trend of less people working in traditional offices .

@Bruce Ellerd - Why not rent out the house in a traditional manner? 

Hi @Josh CaldwellI canvas financial plannersI ask them if their clients would like to sell their low equity homes on lease purchase instead of paying the traditional sales costs of selling with an agent, which saves their client sometimes as much as 9 to 12 per cent.If the sellers have no equity, they do not need to break savings plans like IRAs to use to pay the costs to sell.  

Initial cash flow can be thin but you will find lots of the traditional Boston "Triple Deckers" to consider.  

You can get financing fro banks and traditional lenders, Hard money lenders (high % rate loan based on the asset more than your credit), private lenders (friends family or associates), or owner financing (simply pay the owner over time).Generally you are going to need at least some cash if you use financing.

@Jared Christian I was wondering if you were all planning on doing a meetup still, I see Nov 19th, is this still the time?

I using traditional FHA.