So, I started thinking that maybe it it would be better to convert the garage into a apartment or two smaller 1-bedrooms.Obviously, I would have to get approvals and I would need to run sewer and water to the building.

Do I run these with the 3/1 or how would I do this would I average out the sq ft sold for the other houses then times the average sq ft for this house and just add extra repair cost to converting it into the 3/1?

or is it converted now to a year round home from a seasonal one so you have to get a idea on how it rents? 

Once you've used it for investment long enough to have established your intent of investment you can move into it converting it from investment to your primary residence. 

They said I had to pull a permit to convert from a 3 to a 2.

Property has 2 two-bedrooms that we can convert to three-bedroom units.

@Justin Allison Do you plan on living in the property and then converting it over to a rental?

I’ve been reading about how some investors fund their properties on FHA loans and live there for a year before converting it to a rental.

Here are the options I’ve outlined:Traditional duplexSFH with a basement to convert to a small lower apartmentSFH with correct zoning for an ADU (Alternative Dwelling Unit- more reading here:Pre-purchase two townhomes from a developer before they go on the marketWhat would you do?

This property was previously used as a legal duplex and could have easily been converted back.