I think hard money lender to take this risk cannot legally charge appropriately which means the law is working against you (the law meant to protect owner occupied owners from unfair loans).I agree with @Jay Hinrichs that your best option likely is to sell on the mls.  

Consider structuring your investment through an LLC for liability protection and tax flexibility.This post does not create a CPA-Client relationship.

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.

Ensure you understand local regulations regarding permits; it’s usually a good idea for your associates to form an LLC for liability protection, but individuals can do renovations as long as they pull the necessary permits.

A professional property manager should handle the heavy lifting, ensuring your investment is protected and profitable without adding stress to your plate.

An LLC is useful for two things: anonymity and legal protection.

LLC offers better legal protection.3) Setting up in states that allow your identity to be hid is also overblown.

I want to be sure I’m structuring things in a way that protects my assets while allowing for growth and still keeping money partners protected.Any feedback would be awesome. 

Some kinds of auctions allow you similar protections as a traditional sale.

Handle this promptly to protect the owner’s interests.