I should’ve called another local investor or an inspector out to walk it with me if I did.What I Learned: Do a thorough inspection with a professional inspector or contractorI was scared out of my mind and nervous to the point where I couldn’t sleep for the next few days after signing the contract.

I don't have any issue sleeping at night regarding that idea.

Also, because this is a commercial property, the lease is likely to be 3 years or longer and my tenants won't be sleeping there at night.This is a deal that I found on the open market (listed on MRIS,CoStar and LoopNet).I think the D.C. region is safer than most others for obvious reasons and tends to appreciate in value faster than many other markets.

Possible, yes... but I wouldn’t sleep better with my properties in different LLCs.

It is the difference between a turnkey investment that allows you to sleep at night and one that keeps you tossing and turning. 

So we wouldn't be losing any space by adding this extra 1/2 btr, on the contrary, it's pretty much a "dead space" and the tenants sleeping upstairs wouldn't need to go downstairs in the middle of the night or every morning - definitely more convenient

(as you can imagine there would be wtih 10-15 people in one 2 bdr apt) One particular family had one of their kids sleeping in a closet....not a walk-in closet.

However, by doing it you WILL get a better night;s sleep, knowing that you are protected. 

That way when your victims, oops I mean students, inevitably fail you can keep finding others to fleece, and sleep like a baby at night. 

But looking at risk, leverage, full-recourse loans, etc. all factor into the "sleep comfortably at night" formula that's unique to each individual.