Both these forms consists of a large number of rules and restrictions placed on the tenants, about everyone you can imagine, and they are written to conform to our state laws.

For those who don't know, the anti-flipping rule affects you if your buyer needs to qualify for an FHA conforming mortgage, as opposed to a conventional mortgage.  

WF also offers Conventional Conforming Loan (even for investment properties).

25% down is required per conforming guidelines for 1-4 unit properties. 

The property is two parcels being sold together, one with a small house in need of work on the larger parcel; the second parcel is non-conforming and vacant.

Typically, cities also have non-conforming uses which means it could be allowed in a single family zoned district due to the rules changed after the duplex was established.  

Hard money lenders don’t have to abide by the same rules and guidelines that more traditional bank loan lenders have to conform to.

Here in New England, especially with smaller lots, you can run into a quite a few non-conforming structures, which prevent redeveloping the lot due to lot-size, dimensional requirements, setback requirements, etc.

Sounds to me like you are already on that path, just forgot for a sec that you don't have to conform, you get to be you all day long baby ;)If you have not read this already its time, if you have read it, you need to be reminded. 

Aside from it being more conforming, you need to consider that buyers will not want to be carrying groceries up a flight of stairs to the kitchen and having living space above the bedrooms causes plenty of foot traffic noise below for those sleeping.