One can not convert a motel (c1) into multi without a rezoning, traffic, impact study by the City.

Eventually, this would replace our current jobs.

In July 2019, I purchased a SFH converted into a duplex.

It will eventually rent at the right price and as the weather improves. 

Could the daycare just be converted to more units? 

Converting an investment into your primary residence does not create a taxable event. 

I would eventually like to either flip or own a duplex one day.

My goal is financial independence, and I want to get into house hacking and rents properties eventually.

Also could I treat this similar to purchasing a tax not and eventually repossess the property ?

The best approach is to hire a full time onsite management team that is experienced, and capable of performing all the duties of management, home sales, managing maintenance and repairs, and the implementation of software systems and processes that will eventually have the park running like a Swiss watch.