After sitting vacant for a while I'm entertaining the option of converting to residential units.

If it doesn't happen often you could roll the dice and always convert back to a LTR if you had to.

I see people purchasing new STR's here and others dumping their properties or converting into LTR's. 

Lastly, ADUs are allowed for NON owner occupied properties, opening this strategy up for investors who could convert a SF into two units. 

During the "fix up" process, you would use a different kind of loan that will end up converting to a DSCR loan once you have tenants living in the unit(s).So, I would need to use maybe a construction loan for the renovations and then convert it to a DSCR loan?

Purchase price: $350,000 Cash invested: $10,000 Sale price: $435,000 Primary residence converted to a rental after 2 years.

A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion. 

A good drywall guy can hang and finish it in less than a day easily.But what you need to do is put a bunch of Green Glue between the sheets.

My first start to finish was in Gastonia NC, then Burlington NC then this one in Lexington NC.