I was informed they don't speak to borrows ( not a red flag yet), just thought maybe they didn't speak to me because they didn't want me to influence the  appraisal value of the property.  

Get out of your comfort zone.

If a PM tells me the neighborhood is a war zone, I'm not going.

Never invest in war zones class D neighborhoods.

Get out of your comfort zone.

At first glance, the property is looking like a bargin, but the more I look into what it takes to change zoning, I'm becoming more uncertain.

Looks for single families in RM1 zoning to convert to multifamily 

agreed here but in our market we do more than just build we entitle, attend zoning meetings, we sell the asset, we provide rental comps, we negotiate financing structures, very little of the actual process is building. floorplan design, style, etc local knowledge trumps all.

Hey Kasey, just fyi Iredell county is in litigation because of the new zoning regulations and are not currently enforcing it."

At this time I think the apartment itself is not legal as it appears to be zoned a SFR.