The vacant middle unit was inhabitable.

Thus it was red tagged deeming it “possibly” unsafe/inhabitable

Property is in Illinois inhabited by tenants and they are current on rent with an assumed month-to-month lease.

Specifically, the five counties with the highest joblessness are among the 10 counties with the most cases of COVID-19 per 100,000 inhabitants: Imperial, Kern, Tulare, San Joaquin and Los Angeles.Latina Employment in California.

Hey Alexander, Not sure if there are any specific local adjustments to the code in your area but I imagine your local architect is concerned about the minimum ceiling height laid out in the IRC (International Residential Code) which is 7'-0" in habitable space with the exception of bathrooms and laundry rooms that are allowed to have ceilings as low as 6'-8" (there's a couple exceptions where you can go a little lower but these do not appear applicable to this project). 

@Frederick Peregrino There aren't a whole lot of opportunities to BRRRR with the VA loan because you need to either be able to inhabit the home immediately (no rehab), or - if you use the VA renovation loan - use a VA approved contractor, which doesn't leave a ton of room for live-in flip.

What do I do if the appraiser says the home isn't in habitable condition (can they even say that?)

When you openly inhabit the dwelling and pay the taxes , I think that's what its called ?

Now you if have a home that is completely inhabitable and can only be closed with cash or hard money, the seller and listing agent should understand the value of a cash offer and should not be considering traditional financing offers anyway.

ADUs are being built everywhere in Los Angeles and the only information I can find about them in New Orlean is Article 21 of the city building ordinance that states that accessory units may not be inhabited.