Zoning Issue with 1/1 Duplex

[Joshua Woods]

I'm in the process of purchasing a property that I just found out was turned into a duplex when it's zoned for SFR. (So it's a nonconforming structure) It's in Yuma, AZ. It's a BRRRR, so I need to cash out refi after the reno. I talked to a lender, who said they didn't really care what it was zoned for, they would lend. Does anyone have any experience with this type of issue? I won't need to pull permits for the reno, it's cosmetic. Also, if I back out, I lose $2,500 of earnest money.

The ARV of the duplex we're thinking is 160-170k(for rooms/sq ft), where SFR comps are 155-165k(for rooms/sq ft)? Will an appraiser look at it differently? Thanks!