In my experience, if a deal can survive that kind of pressure test, it usually converts cleanly.

We are trying to figure out our next step — we have had an architect draw up plans to convert the vault into livable space — part would become a 4th unit (studio) that we would intend to use as a STR, and part would become additional living space for our unit (take it from 1ba to 2ba, add a laundry/storage room…)or, we could leave it more or less as-is, get our unit rented, and buy a new property to move into (ideally looking for something with a detached ADU we could rent to keep building/scaling our little portfolio). 

Also keep in mind, that short-term househacks, where you eventually move out, aren't meant to hide negative cashflow.

I definitely think it is easier to get financing before converting to a PadSplit or use private money from people in your network.

(Note: variable rate; watch DTI.)Cash-out refi: one fixed payment, simpler, but you reset your low rate on the whole balance—often a deal-killer in today’s rates.Consider a delayed cash-out after it’s rented if you need more capital later.3) Tax angles (high level):Converting to rental starts depreciation; great for sheltering rent.If you might sell soon, the §121 exclusion (up to $500k MFJ) can be powerful; after conversion, timing and “non-qualified use” rules matter.Interest tracing: HELOC interest is only deductible against the use of funds (e.g., rental improvements yes; new primary down payment, no).Always best to consult with your CPA to run your numbers, so you can choose with confidence.

What does your lease say will happen if it converts to month to month?

What's your current process for staying on top of leads that don't convert immediately?

I havent flipped anything in a while, but assuming that I eventually get into another flip, my DD process now includes asking for copies of the most recent utilities bills, as well as calling the providers and getting what info I can.Risk is just a part of the game.

If/when you use the line of credit to purchase another piece of real estate, be sure it'll cash flow once you convert to a long-term loan.

Pad splits usually have large shared areas in addition to the private spaces, that is what makes them a pad split rather than just a house that was converted into an apartment building.