Regarding #2 (i.e. legal fees) they told us that usually, attorney fees are $2,000-$5,000, but this time they can do it for about $2,000 but don't know exactly about additional fees that will be added by their legal counsel" :)Wow, what a conversation.So, I love an idea of banking with a local bank, having a relationship, but everything I explained above sounded to me very unprofessional.

See this as a great opportunity you can talk to your mortgage company and explain your situation, I am pretty sure they would rather have you rent out the home and pay your mortgage regularly than foreclosing because you could not pay. 

Think how you will explain this to a judge in the event that you have to evict.

They also have a packet that explains the requirements for converting legal use from two to three, which I believe includes adding a sprinkler system.

Oren,What you have said above is correct as to the way it has been explained to me, by 3 separate CPAs/Attorneys that I have various business with.

That can be an issue sometimes, especially if the wholesaler didn't explain everything to the sellers. 

If you send me a message I can send you his contact information.He would also be able to really explain the relationship that you're talking about.Talk soon,William Lees Jr

After you settle, introduce yourself to the tenants as the property manager and explain that the new owner requires all tenants to fill out an application and sign your lease.

So it took an hour to thoroughly explain my processes and it's paid off since.

Ryan,  I know you and most of the people here say Hell No, however let me explain I was kind of skeptical at first, but my mind was quickly changed.