I would suggest the best way to go about this is to have the feasibility/zoning study done first (which sounds like this is what you're thinking too), then get pricing for full permit drawings and the construction from a design/build firm.

I owned a 6 unit small retail property many years ago and one thing that hurt our cash flow is when a tenant left the space sometimes stayed open for a few months at a time unlike a multi-family.Option 2 is to purchase and sell as biz condos

Make sure that your DTI stays below 40%-50% or you may have a hard time getting approve. 

.- Ripped up carpets and re-finished the hardwood- Fresh coat of paint- Laminate flooring in the bathroom- Stick on splash for the kitchen sink area- Few other minor repairs- Brand new stainless steel oven (all other appliances stayed the same)After all of this was finished up for about $5,000-$6,000 I was able to rent the unit out for just above market average in my area.

Nobody in this business would stay in it for long if homebuying or renting were firmly based in logic and wholly unemotional.

Also, I personally would stay way from agents that are currently working for other investors.

I know I'll need to make sure the insurance is adjusted to the LLC after the rehab and deal with any recording fees that take place due to the transfer, but I don't see any other draw backs from doing it this way which will give my company at least a decent start to building a good reputation.Any thoughts on what I may be missing in my strategy I've explained above?

Due to that it would also need new windows/doors.The layout will stay more or less the same however one bedroom will be divided into two and a two new bathrooms will be added adjacent to existing plumbing.  

I'm sending you a connection request so we can stay in touch.

I would bet 4plex 203k (refi later to get out of lifetime MI) would be better if you plan to stay in one location for at least a few years. technically, I think you have to live in it 12 months, look into current regs, you might be able to rinse and repeat annually.