And if you missed your 3-year window after moving out, you're SOL.

But once you've converted into the REIT you now own an equity and not real estate. 

I'm looking at purchasing a motel that was converted to 10 long term rentals.

Major items include converting an office space to a full bath and walk in closet, existing bathroom renovation, new deck, add a new driveway and car port, kitchen renovation, new flooring, new windows and doors, paint, replace siding, replace roof and add some curb appeal.

Learning how to properly evaluate a rehab budget is imperative to your success and there are many books and posts on this topic of how to do it - I have posted many on this topic in the past.Don't forget on your list windows/doors, trims (baseboards and door casings), waterproofing/protecting floor of garage, potential need to frame/or upgrade farming of exterior walls of garage (many garages have stem walls) and the flooring is often sloped to garage door so leveling the floor may be necessary.

I’ve updated some plumbing, new fixtures in all kitchens, about 60% of lighting fixtures, replaced windows on 2 floors, added new appliances on two floors, painted entirety of house last year.

Legally, I can't rent out the basement as there is no window. 

Depends on what you can get in rent on the condo, assuming you are converting this from your primary to investment at closing.

Purchase price: $237,000 Cash invested: $11,850 Converted my primary residence to a Cash-Flowing Rental Property to a Section 8 Long-Term Tenant in a Class B neighborhood.Purchase in Sept 2019 Purchase price: $237,000Cash invested: $8,900Converted the Game room and Office room to a standard bedroom to make it a 6-bedroom 3.5 bath which increased the monthly rent from $2,400 to $3,215.

We renovated duplexes and converted. if the price of a condo is similar to a single family home I would pass on it.