Question - are there any complications that may arise as a result of this conversion in terms of financing, obtaining insurance, management, expenses, future sale, etc.? 

It has been 9 years since I wrote this blog post here on BP, but this may give some insight. https://www.biggerpockets.com/...Do not over complicate it.Some simple things to remember. 

Sounds like the only heavy con is the drawing schedule for contractors being complicated - potentially scaring them away (?).

However, taking out of state trips with them is so complicated and easier said than done. 

I was told by some investors to have a separate llc for each individual property as to create a great safety blanket, although for tax purposes this seems like a lot of unnecessary work. is there any benefit to this?

I'm glad the courts are on our side here in CO for the most part: evictions for non-payment of rent are always pretty quick here which keeps tenants on their best behavior in my experience, and makes "outside the court" stuff unnecessary. 

@Rachel Hertel very complicated situation. 

The inspector can and will demand you make (sometimes unnecessary) repairs before they will turn on the utilities.

If you think you’re saving money by cutting corners and skipping "unnecessary items" you’re actually hurting your investment property.

Investing out of state is a challenge in of itself, doing a 60% rehab when you don't have a team of people with knowledge really complicates things.