So you would need to refinance into a conforming mortgage for sure.Once you do, if you have 20% equity at the time of appraisal and refinance, then you are good and PMI should fall off.

I think that practice is silly and if they cannot make their money based on low cost acquisition and economies of scale/conformity in their rehabs that they don't deserve the extra anyway, but that is just my personal opinion.

On the same token, will a traditional lender allow a duplex or 4-plex to be purchased with a normal fannie may or super conforming loan?

PMI cancels on most any conforming loan I know of.

Account Closed are you looking for more traditional, conforming, FHA, VA residential type options or are you looking more of the private mortgage, hard money type financing?

No windows in bedrooms would make them "non-conforming" and those bedrooms can't be counted when getting certain types of loans (FHA, VA, etc) - something to consider if you ever wanted to refinance or sell.

To the point that @Brie Schmidt made, the pool of investors interested in 3-4 unit buildings shrinks when you fall outside conforming and FHA limits. 

Now, if you have the cash out can take a 200k tempe house to a 375-399k pretty easy as long as it conforms to the area or by campus.

That is more of a non conforming, non-prime type loan so expect higher rates.

Conforming, residential loan or are you looking for portfolio, hard money, construction?