I am getting really into code, building systems, job cost, etc.

As for the insurance situation, @Jaysen Medhurst is correct, that your insurance company will be concerned that you're using the property in a way that it wasn't technically intended, even if it's property setup for a three unit per building codes.

@Scott Mac you've got to know where to invest in Detroit to avoid getting taken advantage of or just plain making a big mistake.Detroit investing is block-by-block, which is difficult for OOS investors to do.Zip codes are statistically too big.That's why we've spent considerable resources ranking Detroit's 183 Neighborhoods. 

I need help with etiquette and what to do Agree, check your state's Landlord Tenant code. 

Purchase price: $100,000 Sale price: $115,000 Purchased a 2 BR single family home in the 51106 zip code of Sioux City and wholesaled it to an investor that same week.

Is there anyone familiar with the building codes to see if its possible for me to build a multi unit home with this loan?

Hired a electrician (top of google page) who said the whole building was out of code and needed to be rewired at $18k/unit. 

I had to give them the bad news, there were no beach properties that cheap and the real prices are $1M to $5M.These articles pull the sales data for zip codes which can span over 100 sq miles, but then show the income data from a small area (1 to 10 sq miles) within the zip code. 

Additionally, you might want to install a fence with a self-locking gate and make sure all pool equipment is up to code.

@Maciej G.Maybe someone with a local jurisdiction could chime in but at far as international building code goes- there is a heat minimum for a home - but like I said some local areas could have their own laws regarding this.