Beyond those, I think there're also rising incomes, increasing construction costs, and continued difficulties that developers face to build in our city, such as the permitting process and drawn out negotiations with city council.

I assure you that the difficulty and complication to exchange into single-family residences all within the same period of time would cause you a nightmare.

But it is very difficult.  I

@Tyler Martin, just be aware that you may have difficulty getting financing through for an LLC or S-Corp at this stage.  

Properties that are unusual, or ones in a sparsely populated area, or one in an area that is seeing a lot of fluctuation (maybe homeowners and investors buying at different price points).If you are having difficulty coming up with an ARV, go as low as you need to to feel comfortable that is would sell or be appraised at that value.  

Aside from the difficulty in reading your posts, you posted as if coming from experience and knowledge.

Macroeconomics and national gridlock aside, all RE investors face LOCAL threats including zoning regs, property tax increases, rent control, neighborhood associations, and so forth (that can and often do change like the wind).Succesfully investing in RE may have increased in difficulty by a magnitude.

We do know the borrower has had difficulty getting a new mortgage.

And from you experience how difficult is it to split the meters up?

I know it will not be easy, but as Teddy Roosevelt once said, "nothing in the world is worth having or worth doing unless it means effort, pain, difficulty..."