I'm surprised someone verbally told you you can convert back to a duplex and didn't tell you that you must get permits.from what you are describing it seems the town gave you a hard time because you didn't get permits, I don't know that you have any legal standing to go after the town,  again, I am not an attorney 

You wouldn't know if it is truly illegal or not without asking the city, which you would not do obviously.

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.

@Lane Berry do you know if I might need to get a license for that or is it something I could do with no experience?

When they snake a camera in, they know pretty precisely where the camera is and can see (to some extent) what is clogging the line.

In fact, some of the best opportunities in real estate come from properties that others overlook—distressed homes with potential that just need the right investor to bring them back to life.If you’ve been in the game long enough, you know that distressed properties can offer huge upside, but they also come with their own set of challenges.

If you're doing FHA, I'm sure you know you have to live in one of the units.

I would want more info from the locksmith to know exactly what was found, but if there was a door lock and you never provided a key, and they got locked out, then its on you. 

If that sounds like you, let me know if you'd be open to having a conversation!

Quote from @Blake Hanson: Quote from @Erik Acheff: I know this is an old post, but I can not find an answer online.