It may take 1-2 years and by the end you will have forced some appreciation from the renovations but also got some natural appreciation from the market.

@Fetch PhoenixI'll add something that may apply....your current policy may already exclude wind and/or fire, which means that you could already be without protection. 

If he meant it the way you interpreted it, he could be applying the rules in his jurisdiction, possibly erroneously, to your jurisdiction.  

@Arron Paulino Your posts illustrate the challenges of exiting SFH's in markets where the natural buyer is another investor and not home owner.

If not, how much are you all "throwing away" on rent when those funds could be applied to ownership?

@Rory DarcyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Jemini LeckieRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Do I need a zoning attorney or can I apply myself?

You said that you are applying for an FHA loan so it sounds as though you'd be living in one unit. 

There are laws (and statutes with three "T"s) that may apply in these situations on both a state and federal level.