@Sammy Lyon theres really only 5/50 states with non IRC conformity (CA MA AZ MN VA).

The payments for the hloc will be factored in since for a conforming loan you will need to declare the source of funds.  

Rich in Georgia we call them pipe farms.You have some that are raw land but most are projects where the developer went bust and couldn't sell any lots to builders.Right now except for some small areas of Georgia you can still buy a 2 to 3 year old brand new construction home that was foreclosed for less than replacement cost.This means even if a bank gave a builder the lot for free and the builder put a house on it they couldn't sell it to break even going against 2 yo 3 year old REO's.Another issue is some of the subdivisions say have 200 lots.100 were sold at the height of the market.100 were leftover with pipes and streets in with lights and nothing else.The 100 that were bought many are just holding hoping for a recovery.The rest are doing loan mods,short sales,or going into foreclosure,or builder is desperate to dump the last few homes they have.At the height of the market they sold for 250,000 and now they are 160,000.If I buy a lot to build on or for investment there is high property taxes and HOA fees even on the empty lot to carry.If the lot and HOA comes to 200 a month that is 2,400 a year I am carrying.If I am not building a house to sell the lot has to go up in value by that much every year just to break even and then lose money when I sell.Another issue is say 4 bed 2 bath homes were built in the front half and now a builder wants to put ranch single story homes in there at a lower value to sell in this market.We had a recent lawsuit in my county over just this matter.The community sued the builder as the ranch homes they had plans for would not conform to the original master plan.The homeowners said we would rather have empty lots than allow non-conforming homes to be put up that would affect the values of our subdivision.The developers say we need to build for what the demand is today but the county,city,and community say we understand you need to make money but not at the expense of our long term master plan vision.So many times they cannot come to an agreement.I can get you lots with pipes for 1,000 a piece.It's great if you hold long term but the current inventory has to be worked through in my area before people build again in mass.There are still custom builders for plots of land etc that are one offs.So I haven't bought any lots for the reasons stated.

If you want a conventional (conforming) loan, then yes, the property must be titled in your name.

the property I’m interested in buying has a 8x9 room with very large windows on the main floor .  Based on the Jackson County’a building code, I believe it meets all the requirements of a bedroom except for the closet...

An appraiser I work with pretty often said that in KC bedrooms don't need closets to be conforming, because you can throw a wardrobe in it!

The lease must conform to state laws.This link will provide you with State Codes concerning Rent Due Dates and Grace periods by State:https://www.nolo.com/legal-encyclopedia/late-rent-fees-and-other-state-rules-on-paying-rent.html

I am looking for a duplex in these areas but they are very uncommon and for the most part legal non-conforming.

No room for lazy thinking.The funny thing is, I came to real estate seeking opportunity in "alternative investments", figuring I was thinking outside the box (and the equity cycle) - and I've ended up thinking in inflexible terms about the primacy of cashflow off a 4-plex with a conforming 30-year mortgage (I do think a short-term or ARM is imprudent, given the macroeconomics of the interest rate situation).I don't think being data-driven means I need to be close-minded.

A banker can probably be of more assistance here, but my understanding is that these loans are generally written to be capable of being sold in the conforming market so the requirements are similar.