I would like to legalize it and was wondering if anyone would be able to give me a rough estimate of the cost to convert the property to a 3 family.It does not have a sprinkler system. 

Tell them you want your deposit back in full plus compensation for them breaking the lease and any extra costs you incurred (eg did you have a cancellation fee for movers-I doubt it as you said you didn't know when you planned to move in).

I'm Wiley Petersen from Southeast Idaho, I am just getting started in real estate investing as I want to be financially free at some point.

Time to build the foundation below.Check out the Start Here page http://www.biggerpockets.com/starthere Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

They suggested while the property is vacant it is easier to repair, which costs 10-15k. 

I’m in the same boat - chatted with VestRight sales, got interested in joining, and started looking for real life reviews to reach final decision as the program cost is not cheap for me.Wondering what was your decision?

That will get mortgaged in the next 30-60 days, freeing up $300k.TIA-Chuck

It has been shown to drive the cost of renting up for new tenants. 

A mold specialist will cost you and arm and a leg and likely recommend unnecessary repairs.

Feel free to reach out if you want more insights.