Even if you could keep the 3rd unit, the cost to legalize could range from minimal to too-big-to-bother (again, will depend on your exact situation).Hard to know unless you talk to the folks who enforce the rules.

I think the traditional re-fi route will accomplish everything I need it to while keeping risk minimal. 

I can see commercial real estate taking a much stronger hit as businesses closed and vacancy rates skyrocketed, but I am thinking that residential at the time for savvy REI's would have had experienced minimal downsides that just required you to hunker down, conserve cash and wait for the recovery to open up a windfall of cheap properties and huge opportunities. 

Or, someone realized they had screwed up, and are dumping them at a loss to minimize further losses.You guys do realize that to collect your money, if they are not redeemed , you have to send them to a tax deed auction.  

It is also best to consider the many things that can happen ahead of time to limit the amount of grief that can come about when members later disagree with how a specific situation should be handled.Sounds like you and your father are on very good terms, but business can have a way of putting strains out relationships and it is always good to minimize possible friction.

I do attend classes a couple of times a year - my rule of thumb is that the cheaper the course (0-$99) the more they are a pitch for something else; and you will only scratch the surface of the topic (teaser).

The proceeds (est.150k) from the sell of these lots will be subject to capital gains tax and we want to minimize that as much as possible.  

A borrower who is forced or coerced into surrendering title may have claims against the mortgagee for predatory and deceptive practices.Additionally, the common street level sales pitch is that investing in loans is less of a headache than that of real property.  

I'm creating a pitch book that highlights my investment strategy.

Meetup.com is a great place to start looking for local meetups - just be aware, there are lots of sales pitches too.If you do decide to invest outside of local area, I'd encourage you to look at Alberta, specifically Edmonton.