Also ask, when you submit the plans does the city give a hard time on all the stuff or just a couple things. 

It would cost a lot to get the planning approval and do a complete renovation of the 2 units.Can anyone suggest what would be my options at this point?

But, if they have given up on the home, is another story.I plan to stop by the house again soon and leave a note and try to find contact info to talk with them to get their story.From what I have gathered, the original owner passed away and one of their children obtained the estate of the home a while ago but, may be living in Orange County.

In two years I plan to pull equity from my home, rent it out, and purchase another to live in for two years..

I am taking your advise, and switched my game plan to include a local agent or property manager to show the properties. 

Still, I think you'd find it difficult to find one that would be a good long-term investment unless you had another ~20-30 years to go, it's at least cash neutral, and you don't plan to hold it too long (to avoid too much investment loss and before you get to the point where it's unsellable because of too few years left); that's another way of saying that maybe it suits your cash needs in the near-term or is at least less of a pill to swallow than other options until you find something that's more of a sensible long-term play

But in Smarter Contact, even though it's not required (if you're in the Elite or Enterprise Plans), they're strongly suggesting it and even have a report on "carrier block rate" percentage.

If you plan to use the remaining HELOC for a DSCR or BRRR strategy, that could help you build more equity, but consider if the current market conditions will lead to higher rates and lower cash flow in the near term.If your goal is to scale, you might consider holding onto your current duplex for the cash flow and focusing on the BRRR/DSCR strategy, which can allow for more control and potentially better long-term returns.

I'm planning to use that money for a downpayment  to buy a multifamily where I would live in one side and rent out the other side. 

Mortgage Balance: $430,000 Monthly Mortgage Payment: $3,100 Current Rent: $4,100/month (below market rate, planning to gradually adjust it during yearly renewal to eventually catch up to the market rate) Appraised Value: $900,000 (purchased for $657,000 8 yrs ago) Managed by a property manager Loan assumableProperty B: Located in VA.