It's possible that they are turning up the heat to the maximum because they are part of a utility-subsidized bill program.

If Planning does determine the existence of your ground floor unit, it will require you to legalize the unit through the existing Planning code process assuming zoning supports the third unit OR using the new ADU program making your fast track condo conversion a passing dream.With regards, to some of your latter comments and questions:1) Any un-permitted work (including corrections) is not a good idea as a quick compliant from a neighbor can bring an inspector knocking on your door with a NOV especially in the current environment where everyone is SIP.2) Legalizing existing constructed spaces can be hit and miss based on the inspector you get.

Local grants and first-time homebuyer programs can help minimize upfront costs.

I believe though Douglas County is no longer "rural" enough for USDA programs.

A local lender has a first-time homebuyer program that offers 0% down with no PMI and $2k towards closing costs with a very competitive rate (6.025% as of 8/19/24).

Thanks  100% go sec 8 or other govt program.

You want to break down your preference in regard to sale price, down payment, program, (SFR/MFH), seasoning is important, and the two R's you want to pay most attention to is the Renovate and Refinance.Most investors make the mistake on the renovate or refinance and sometimes both.You also have to figure out if your buying as a Primary or investment because if you buy as a primary you always refinance before you rent. 

@Gino Barbaro has an excellent education and coaching program.

I actually ended up working with a DFY arbitrage program that finds the right property, negotiates the least terms with the landlord, and even has an interior design department to set up your listing.

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