I just wanted to add that if refinancing your converted primary residence is an option, there are some good refinance programs that have been extended for FHA and Freddie/Fannie homes, the FHA Streamline and the HARP program.

You should call it a "Nonrefundable Holding Fee" that converts to a security deposit once a lease is signed.

I'm checking to see if they were required to pull permits and if I would be required to do so as well if I decide to convert it back to a garage.

Its likely they can give you some insight into a specific property and what issues you might have converting it.

By improving the quality of apartments and applying the deferred maintenance that this building has been lacking, I should be able to get market rent close or at $525-$550 a month.There was a half-done converted apartment in the basement.

If paying utility is uncommon for the area then you have a building that just hasn't been converted yet.

The Land Contract must somehow be converted into cash in order to complete the investor's 1031 Exchange.

Basically, we want to convert our appreciation play into income play.

Anyhow, this is maybe slightly off topic as it's dealing with my personal home rather then a rental property, although I do plan to convert this home to a rental within a few months or year at most.Background is I owe about $218k on the property, it's zillow estimate is about $212k, but i had a Realtor take a look and they recommend if i wanted to try to sell it (i was looking at options) to start at $240k.

Or does subdivision required converting lots to buildable residential lots with utility service hooked up?