I'd even go as to recording the conversation.

Properties acquired for development, rehab, or conversion are generally held for sale (not investment) and will not qualify for 1031 Exchange treatment. 

Purchase price: $60,000 Cash invested: $26,000 Single conversion to duplex (1+1)This one wasn't too bad, partial gut.

If your local gov works the same way that mine does, the best place to start would be to check out the local zoning ordinance and see what properties are actually eligible for a conversion by right, as many places have rules against it or need conditional approval. 

He bought that one for $550k After the reno- and ADU conversion: the home is now valued at $760k (this is just an example) We have referrals to contractors, architects etc if this is of interest. 

I have started the conversation with locals I know in those cities to help me target good areas and avoid bad ones.

You should certainly have a conversation with the PM to discuss why they were so off on their pricing. 

But, I know that the best way to learn is to get my hands dirty and having more conversations with those who have experience it in or currently working on these projects. 

I know the financials are sound, however I'd love to have someone model the business and be able to answer questions like "What if conversions decreased by 25%, or the market fell 20%, how does the business model look then?" 

Just my .02..I suggested 50/50 split to start off the conversation.