Also if this is an inexperienced buyer make sure they don't think they can just convert to gas some areas its not available. 

IMO if you are willing to take a distribution and pay taxes think about converting the funds to a Roth IRA, keeping it in an IRA and do the investment with your Roth if at all possible.

My thought is I could buy out the other owner and then hold the property for a couple of years and convert it into an investment (as a seasonal vacation rental - which there's a decent market for in the area).

It could easily be converted into an 2 unit upper and lower with a 3/1 and 2/1.

My dad converted it to a workshop for his craft. 2.I’m expecting some money to come in from my worker’s compensation case so I’m not totally against a mortgage.

I have a single family property where I want to convert the basement level into a one bedroom rental in order to capitalize on rental space and bring in additional income.

When do you convert the rental contracts to the LLC name?

I would expand your search criteria to duplexes, triplexes, houses with a guest house, or houses that could be converted into a duplex.

Purchase price: $122,700 Cash invested: $10,000 First home, minor updates, new HVAC and Roof over time - converted to rental What made you interested in investing in this type of deal?

Are you saying that the space was converted from a garage to living space including another bed and bath?