I can't blame people for trying to conform to lease terms.When I got the application from this couple, he said his landlord is selling the house, he has to give notice, he'll lease up by July 1, so his landlord would have adequate notice and he like to do that since the landlord's been very good to him.

Legal entities such as LLC's are not eligible for conforming residential loans. 

However, almost nobody tells you that you need more expensive commercial financing since legal entities are not eligble for conforming residential loans. 

The best way to proceed with BRRRR is to get at least 4 conventional conforming loans (Freddie/Fannie type).

From the documents I read, they seemed to not be conforming to the SAFE Act and Dodd-Frank on the belief that they were exempt because they are doing contract for deed.  

Do a refinance to an owner occupied conforming loan and move in.  

For example, if area gets rezoned, all buildings that existed on the properties prior to rezoning and don't conform to new zoning will be grandfathered in.

Do you care that you are making a juicy profit from a lot or a commercial build or ever a non-conforming dump - it's all about how much you get to spend when you are ready to spend?

So that will definitively tell you if it's a legal 2 family or not. and I can tell you now that if the property is a 'non conforming' 2 family (meaning it's a legal 2 family but only because it's grandfathered in as it currently sits in a one-family Zone) then the chances of you getting it converted to a 3 are very slim. good luck.

There are plenty of comps and all the houses are similar and conforming.