There was some sort of State rental assistance, I think, for unwed pregnant mothers.

I recommend you read some books about how to manage properties well, use a strong contract, know that contract inside/out, know your state law inside/out, build policies and procedures to catch and stop problems quickly, know how to screen and select good applicants, etc.An ounce of prevention is worth a pound of cure.

@Mark Albini Google some of the California projects I'm always seeing on the local news here, you'll see how elaborate they can be, The only ones I'm seeing get done with zoning changes are the ones that have some sort of Non-profit or charitable component.

Having that sort of liquid money will attract a lot of attention here:)  so maybe go slow but steady and meet in real life , do vetting etc of your PM .. you know what I mean

I am fairly close to wanting to execute and am interested in some sort of live in BRRRR strategy.

That will be sorted out in the process of the lawsuit. 

I just know from what she tells me its a lot of moving parts in regards to funds, property selection, immigration process, and the development of  the project.

IRS and industry compliance: Select a firm with a strong track record of delivering IRS-compliant studies.

First of all, you want to do your due diligence to make sure you know what your are getting into and hopefully you can get some sort of assurance from the Town that the two family is legally non-conforming.

They usually have less money to lend, so they are more selective on which projects they finance.