While I've never attempted to do this in Jersey City, I have inquired about doing it I'm Kearny (both Hudson County).I attempted to convert a 2 into a 3 (floors same as yours) and I was told I'd have to conform to current building codes if I wanted to do that.

., yes, a conforming loan owned by Fannie Mae can potentially be transferred to your LLC.Regarding asset protection, there's a ton of other threads on the forum covering that. 

*Sections six and seven conform existing notice requirements for month-to-month tenancies to the notice requirement created by section three.

The day I was going to remove all contingencies, my contractor while sending plans to the city found out that ground soil the exist house was build on was basically back filled decades ago so it was not conforming to todays standards.  

Lots of questions before a qualified answer can be given.HOA's in Arizona are common and in many cases very good at maintaining nice clean properties in a conforming way.

@Michael Krupp is correct regarding what are called non-conforming multi unit buildings.

@Daniel Dollar You're on the right track...here is how your scenario would lookInitial Purchase$100,000 Purchase price$25,000 Down Payment (75% LTV on residential non-occupied...conforming loan)$2,000 Settlement charges $1,000 holding costs$20,000 renovationAfter reno appraised value $200,000Refinance (cash out) at 70%LTV= $140,000-$75,000 (original loan payoff)-$2,000 lenders closing costs=$63,000 cash out with a new lien balance of $200,000 (this is what your new mortgage is based off of...plus you'll need PMI now since your lien is more than 80% of the value of the property)Now start to pay yourself back from your original out-of-pocket$63,000 starting cash-$25,000 original down payment-$2,000 settlement charges-$20,000 renovation-$1,000 holding costs=$15,000You came out positive here, good job...but look at your property...saddled with debt and likely zero cash flow.BRRRR really only works well when you are buying at .50 to .60 on the dollar and have a reasonable renovation...and its really not a good idea to use in most scenarios...certainly not a good way to scale. 

@Tracy Pah Is this a conforming loan?

And if you're needing to finance the purchase it is a product your average conforming lender cannot provide. 

@Tyrond Duplantier Jr. if the loan falls under conforming agency loan (FNMA or FHMLC) then you should be eligible for Delayed Financing.