I explained what the person was doing to him, but unfortunately the property turned out not to be a good fit for me or I would have purchased it from him directly. 

If you don't have appropriate funds to enter a physical asset-- meaning physical risks, humans to manage, etc., then it's best to wait until you do or invest in a REIT.You're just not fit...right now. 

Once we have agreement in principle we then have our attorney draw up something formally that the seller can share with his/her attorney if they see fit.  

The seller was motivated to sell, allowing us to negotiate terms that fit our strategy.

Find the strategy that fits your financial goals.

For fippers;  due to high liability falling onto you personally if plumbing pipe pops a fitting after you close/sold to a buyer and you used a handyman to do the plumbing without the plumbing permit AND inspection;  bad things are going to happen.   

I guess it physically can, but what will it lead to?

Only you know which locations will fit with the lifestyle part of your objectives so you'd select the places that work for you first.2.

I'll have to read the regs closely to see how to modify the design to fit within the codes.

And the market conditions are unwelcoming (physically distressed inventory, difficulties with Ogden City, and poor tenant pool).