Buy Craftsman Illegal Split in 'historic neighborhood'?

[Marie S.]

Hi there, I'm looking to buy a 'triplex' in a trendy part of LA that I otherwise would NEVER be able to afford. I'm curious, is it because the agents are incompetent? Or because it's a 'Historic Neighborhood' with a Craftsman home that's been split down the backside to make an illegal studio out of part of the main house. The other 2 legal units are horribly laid out and it'd need more reno $$ than I have to get market rates right away, but it'd at least be able to cover piti and SOME fix/contingency costs in the meantime.

My question is, is the fact that it's a 'Historic Neighborhood' and a Craftsman home scaring people away? Should it scare me away? For my program I have to live in a unit, and I plan to live in the illegal one until I save enough money to be able to convert it back and renovate, and get enough rent to re-fimove out - or preferably sell if that area goes up as much as predicted.

Help! This would be my first 'deal', and I feel like I know just enough to potentially get myself into a bad first buy =/