If this property is historical in the sense that it is on or may be placed on a historical register, the renovation project will also have to conform to a set of conditions that will generally have to do with maintaining all or significant portions of existing architectural elements such as facades, building materials and colors.Historical or not, any planned project will have to be heavily vetted in terms of existing conditions and projected uses for all major building elements such as structural, electrical, plumbing, mechanical and ADA and ANSI provisions.

@Craig ClarkIf you are a cash buyer, then you can absolutely do an immediate cash out refi without waiting - even into a conforming loan.

get on the mailing list of all auction companies in your area, attend auctions,deal with trustees on no sales, subscribe to the Legal record in your area, follow tax sales, sit in housing and rent court.run ads in papers and radio - WANTED real estate, houses, commercial and non-conforming properties, any condition to purchase, control or assign. 

@Jacob Cunningham - It sounds like a non conforming property with the extra unit (more units than zoning allows).

Code enforcement is showing up tomorrow to assist me in making the unit(s) conforming--hopefully they will be able to shed some light. 

Freddie Mac Home Possible Bulletin UpdatesMain Points For Freddie Mac's Home Possible - Reduced Mortgage InsuranceLow Down Payments: LTV of 97% on 1 unit & 95% on 2-4 units within standard conforming limits.LTV of 95% 1 unit, 2 unit -85%, 3-4 units 80% for super conforming.Conforming loan limit look up: Conforming Loan Lookup PRIMARY Residence purchase onlyNOT Required to be a first time home buyer, but limited to owning 2 properties, including subject. 

When doing background screening companies need to adhere to a ton of privacy regulations and are subject to site visits to confirm they are conforming.

I've been looking at a few duplexes that are legal non-conforming as they were once zoned R2 but are now zoned R1.

Look for portfolio lenders, who don't have to conform to Fannie/Freddie lending guidelines and have more freedom with terms, leverage, etc. 

I was thinking about the investment potential of these types of properties as fixer uppers.Barring any other issues, this would make the house conforming and bank financable.