You might consider: Consulting a Real Estate Attorney – Your emails may possibly prove misrepresentation.Requesting Public Records – A FOIA request might reveal why the city denied you but later approved the duplex.Escalating to City Officials – Bringing this to local officials could expose inconsistencies.Exploring Tax Write-Offs – A CPA might help offset your financial loss, if it is possible.I’d definitely seek legal advice.

KwanzaHi Kwanza, I can help answer this question as I've worked with investors and helped them buy LTRs, MTRs, and STRs (own quite a few myself as well).

Could help you save some serious $$ if buying and selling there and can also get you access to their MLS systems.

Networking with local investors through BiggerPockets, Facebook, and meetups can help you navigate the market, while avoiding common mistakes like underestimating expenses, poor tenant screening, and hiring the wrong property manager.Good luck!

At that time we could renovate the ground floor apartment and potentially turn it into (2) apartments for a total of (5).My questions come down to how do we deal with the existing 40k mortgage, whether we can make it work so her parents aren't paying much in rent, if anything at all, and whether or not we set up any legal entity, like a trust to help the legal situation of paying off her sister down the road. 

Welcome Alana, you will find a lot of helpful people on this platform.

When I learned about the situation, I knew I wanted to help preserve the family property and also create a solid investment for my future.

Home 1 is ideal for a fix-and-flip loan to fund the remaining $90K, which I can help you evaluate options.

Extremely helpful 

Hey Kenny no it's more out the money to work and if needed get personally involved right right now have 3 clients I helped raised 175k in 0% interest business funding with 12 months 0 apr and they want to get going in real estate and make modest returns not shooting for home runs