The house is paid off, and I'm trying to see what my best option is to do with it.I would like to do a full gut renovation on all 3 apartments, but I would like to be able to see if it's possible to convert the cellar to be a legal apartment and get a CO that states "multi-dwelling" instead of "2-family".Does anyone have any experience with this?

People are more cooperative when they have options.

There are a lot of wholesalers who are buying lists of properties in foreclosure / default and do not realize this in many states is considered predatory.As taxes and insurance increase along with homeowners having equity, states will start to catch on to this and my guess is start going after more of these wholesalers.It will be an easy win for them as most wholesalers act as brokers illegally (do not do double close) and do not let the homeowner know all the options available to them (modifications/ bankruptcy), they are out to solely benefit in their behalf which in itself is predatory

Another option as well is tapping into your referral network.

You also have the option to refinance into a conventional loan as early as 6 months if the equity/LTV meets guidelines.

On top of this, our property management options also leave something to be desired.

Have you explored any bank statement loan options ? 

Not a super-helpful answer I know, but the options are pretty vast!

We have two options on ours and the owner can choose. 

. ($50K sales price, 5K lost rent, 5K in commissions and closing costs)Account Closed has a good option.