You’ll want to get loans from local banks and credit unions but you may run into issues with more limited features.

In Philadelphia, which is where I am located there was a recent re-set on rents that are significantly higher and suspect the increased rents will cause more investors to turn to the program which may cause more lease-up issues.

Or, in most metro areas, you can obtain the list of permits that have been issued, and see who is receiving permits. 

You would expect a clean title at close so if there is some issue, then either it would be resolved by the seller or the deal would fall through.

Like anything it has to stay balanced but small gestures go a long way in reducing turnover and mitigating many "would be" issues. 

After looking at your post, I realized it's probably necessary to have a dedicated real estate attorney handle this issue for me since it's serious and I might make a mistake big enough that probably will cost me too much money to fix.

Or should I just have them install another meter for the third floor to avoid any potential issues going forward. 

Title issues tend to be the fact pattern where properties are truly not financeable but that's rarely the case when you see the "cash only" adverts.Ultimately, proceeds will be transferred through a title company and its not as if the buyer is showing up with a duffel bag filled with cash.

Lender A misses this or doesn't have this knowledge and then tells you a week before closing that your rate is changing because the program they quoted wont work once the issue is caught. 

Highlighting the strong profit potential and taking measures to address any concerns about costs, scope, or holding risks will make this an even stronger pitch.