Get some guidance on what makes sense from the lender's perspective.

From your perspective it's actually no different than what you would normally do - sell then buy. 

Great perspective, already becoming so, and I still have endless to-do lists when I visit.

just asking questions that might give you perspective...

If you want to get taxed as a partnership, then my understanding is that it's somewhat moot from a tax perspective whether you have an LLC.

From a developer's perspective, they generally like to work in areas where they can count on support from the local government. 

Pros and cons of SFRs and MFs (from my perspective) are as follows:SFR Pros: Less turnover, tenants take care of yard/lawn, more easily able to bill back for water/sewer, easier exit path possible by targeting owner-occupants down the roadSFR Cons: Turnover means you have zero cash flow coming from the property, and one problem tenant can cause you to have many months of zero cash flow coming from the propertyMF Pros: More revenue sources (multiple units) so even if you have a turnover you still have some revenue coming in typically, more likely to hear about problems (e.g. tenants love to tell on each other, so if there's someone with a dog who is not supposed to have a dog you will likely hear about it from another tenant)MF Cons: Typically LL takes care of yard/lawn, often a single water meter so no bill-back possible, greater turnover (though in my one duplex, one of the tenants has been there 10+ years and the other 3+ years), less appealing (though not entirely unappealing) to owner-occupants if you are seeking an exit path eventually

This isn't much time for construction - especially if you first have to go through a permitting and rezoning effort which are time consuming but add little value (from a dollar perspective)2.

@Robert JamesVery subjective to say the least in regards to “fit and habitable.“ I was looking at it from the perspective of the foundation repairman that I am vs. the landlord.  

Thoughts and perspective from some experienced investors would be greatly appreciated!