The official zoning is C-RS (commercial rural service) but as the home was built is 1919 so it is existing, non-conforming and can be used as a SFH or commercial business.

Talk with a custodian on the 1031 plan so you know for sure the asset you're buying will conform to the rules.

The official zoning is C-RS (commercial rural service) but as the home was built is 1919 so it is existing, non-conforming and can be used as a SFH or commercial business.

In as simple of terms as possible, loans break down into conforming/conventional loans governed by freddie and fannie and commercial loans that banks write and hold themselves.

The house was originally a duplex, but the city enforces a rule that a duplex that sits vacant for 12+ months in our zoning district, then it will be a non-conforming use and thus must be converted to single-family. 

But having several partners could also cause some challenges too.In the investing world there are 2 main types of loans:  "Conventional, Conforming" and "Portfolio" loans.Conventional, Conforming - these loans are governed by Fannie Mae and Freddie Mac. 

@Bryan Johnson In the investing world there are 2 main types of loans: "Conventional, Conforming" and "Portfolio" loans.

They ended up being able to offer a normal conforming 30 year fixed loan with reasonable rates. 

It will be FNMA conforming 30-year fixed-rate loan, so I have to deed it to myself and the lender is giving consent to deed it to LLC, so I'll probably set up a new "holding" LLC instead of deeding it back to the operating LLC.Meanwhile, I have been dealing with the knob and tube wiring issue.

I will tell you, most GCs will bid using their own format and won't want to conform to what you have, especially the big ones.