If I was local to the property I would be more okay with it rather than if I was investing in older in a different state.

Hi Mary, I'm a local investor. 

Are you looking to invest locally there?

I recommend you research the local section 8 program. 

If your local market is very active and homes are selling fast, you may be able to get by with doing less.Your Home’s Condition: If your home is vacant or has a unique layout, using a professional stager who can bring in the right furniture and accessories may help buyers truly visualize its full potential.Your Budget: Talk to your agent to get an idea of staging costs in your area, as it can be the difference between your house selling and sitting.

The local Mayor is saying we cannot reuse the space for this.

I can also put you in touch with local lawyers if needed.  

I’m a local Pittsburgh Wholesaler and ex Army Vet.

Many local banks/CU's will go to 85% CLTV.

So the real answer is do what's comfortable for you and what makes sense based on your own financial position, your age, your desired outcome, and your local market.