I' on the road for work so plan to call and get an update eventually.  

Eventually, we found ourselves being the first call when they were ready to make a move.We didn’t rush them, we didn’t push for the sale, we stayed patient and persistent—and when the time was right, those long-standing relationships turned into deals that no one else in the market knew about.This approach not only led to deals but also built our reputation.

I would explain that to them that if they don't stop being obstructionist that they stand to end up with a lien on their house as a result and eventually lose that house.

The new owner had it from 1986 to 1997 and when he sold it they listed it as a 1 bed apartment (according to the MLS listing from 1997), so we are pretty positive he converted it during his ownership. 

An arrest was eventually made a few years later: https://www.fdle.state.fl.us/News/2022/May/FDLE-makes-arrest...   

Eventually, it led me to choose another lender in the interest of time.The LLC was formulated later and I am working to have the property rent out.I am looking to transfer the property into LLC for the following reasons1) Liability2) Tax separation from individual / rental property.  

Usually, lender review the internal photos as well to ensure it can be easily converted back to residential use easily as well.  

To answer your other questions, you would be able to charge more for the additional space, but I would think that would be negotiated when you make the modification allowing them to convert the drive through space. 

Personally, I live with my girlfriend who owns a condo in Scottsdale we'll eventually convert to a rental, so I would most likely go with a BRRRR strategy myself.

I want to wholesale first, and eventually fix and flip.