All you can do today is to sell for cash or rent, unless you become SAFE Ace licensed and do everything in complete conformance to their rules.

Are there any problems that could arise if I continued on with the property without doing anything or could there be a way to get the conforming use variance without adding a sprinkler system?

The rule is that an agent must submit all offers THAT CONFORM TO THE SELLER'S INSTRUCTIONS.

If you don't self manage then subtract another $250 per mo for $162 net.If you get a conforming loan you need to put down 25%, or $75000.

I believe that the 6 month seasoning has to do with Fannie/Freddie requirements and will be part of any conforming loan. 

I would put a contingency in the contract that it has to be a "non conforming duplex".

@Stathis KaridakisLike a couple of the guys said, there are a number of loan products that are NOT conforming/bank products that carry 30 year amortizations and are fixed. 

Things like 1% rules, 2% rules, 50% rules, dollars per unit or square foot and all of that are what cause people to fail in real estate, either because they miss deals (or never find them at all) and get frustrated and quit, or they buy deals that conform to the "rule" but aren't good deals at all. 

Our future projects are going to be more streamlined and conforming.

FHA is the customary vehicle used for multi family, but large loan amounts can exceed FHA loan limits and the property may not meet the self-sustainability requirement.Conventional is a good way to go, but you're butting up against the conforming loan limits with a multi family out there in CA.Not impossible by any means, but you need a good lender to marshall you through the process and explain your options in detail.Stephanie