As a '09' investor the reality of a collapse market looks a lot more like Mad-Max as people run in circles with their hair on fire, bankers grabbing every penny they can and locking the vaults tight.

The factors here are several layers deep...1- The threshold decision is rooted in local ordinance and zoning...if you're in an area with tight local ordinances you're fighting with the people that live in the neighborhood before you ever reach the city zoning folks...this can go one of many ways2- ROI on the conversion...you're first stop should be with a local architect...they are worth their weight in gold when navigating a project like this and will wade through the regulatory waters much better than you...and a simple phone call may be telling to whether the conversion would be permissible.The extension of this is the cost of the renovation in relationship to the rents received...the stars would really have to align to say you should spend a significant amount of cash to convert a performing building with 4 revenue streams to serve another function (but there is more to this)...and the cost of construction (and lumber in particular) is 5 fold what it was 1.5 years ago...3- As you indicated...exit...I think the only rational reason to convert a 4-unit would be to get condo status or single family/ shared wall and sell one or both of the units to an end buyer (you are basically paying the role of a speculative developer here)...this is happening frequently in locations like Olde Towne East and Merion Village...hard to demonstrate how successful this has been, but it seems far fetched reasonable consumers would pay the same for a  free-standing SFR they would for half of a "duplex" or condo, but who knows for sure.Either way you look at it you're in a residential appraisal situation on the comparable sales approach....4 unit buildings are still "single family" homes. 

The parking was tight.  

Market is hot and tight right now so give him time. 

Their issues can quickly become yours if they aren't able to fix a roof leak that is coming into your property.I would not be a buyer, personally, because the numbers are too tight, both in reserves and free cash flow.  

and yes as we here in the northwest know 2 to 4 million is not out of reach compared to Mid west fly over country where homes sell for that but in very very tight specific locations.  

Thankfully, my agent and I paid close attention to the due diligence deadlines and were able to cancel the contract within the diligence period and I received my full earnest money back (though it was odd that the title company did not wire the money back and instead mailed a check, which delayed receipt of my money back by a week).It was beneficial that I work with a full service property manager, who also acted as my RE broker for the deal.

Do not miss the deadline because if you do - for any reason - you will lose your right to cancel and lose your escrow.  

Do they get along well enough to be able to work together when emotional, money is tight, work is overwhelming, etc.That said, if your kids are into rentals/real estate it could be good, but make sure they are educated over and over on what to expect.All that said, I do have property in a Trust for my kids as beneficiaries. 

If you think inventory is tight on SFRs in 2021,...imagine what it will be like in 2121 if this comes to pass. :-)Just kidding..................................sort of.