I agree with converting them to fixed-rate loans, maybe 15-year terms.

Our insurer will convert our builder's risk policy to a landlord policy once the rehab is done.   

What would happen if it's converted to a five-plex?

I could definitely do that, but since I've recently gotten the real estate bug, I was just considering converting it to a rental, as another option. 

The true value of you money outside of the house is equal to at least 5 times what it is inside that house...and this is any house...your own home or a rental.Once you commit to your house being converted into a rental, you must forget it was ever your house (I didn't way that part would be easy), and start treating it for what it is now...a rental.

Front end : Less Revenue thus less tax payment , Back end: Stronger Balance sheet by converting debt into equity. 

My wife and I are moving to the area and are looking to buy a 3bd/2ba (<2K SqFt) detached house that we can convert into a rental within a year or two, just the time for us to know the market better before we buy our (more permanent) primary residence.

The main home is a 3/2 bath 1,456sqft, and the 2 car garage has been converted to a 1bd 1bath.

Does anyone have a good script that converts well?

It's currently a two-story shell that we're going to convert to a 3 story triplex with higher-end finishes given that's what the area supports.