Great idea - One big problem is local government.In Portland, change of use is near impossible even in zonings that allow you to back fit residential.They write those codes and keep adding to them and really don't like people not following them no matter how good/useful an idea you have.

I checked the zoning codes but really didn't understand it that much.. 

I believe his all-in costs for the reno will be $140,000Below is a zillow appreciation map of the zip code in Columbus.Here are some comps (remember to factor in the appreciation when looking at the closed comps)Follow this link to see the page:https://www.flexmls.com/link.h...This link is valid until 10/29/2020.

Obviously the owners were having some type of issues going on so I decided I was going to make an offer to take the property off their hands and bring it back up to code. 

Ignoring the internal revenue code, the judge-made-law substance-over-form doctrine and sham-transaction doctrine might also stand in your way.But FWIW, you'll only have to "logic" your way out of it if you're examined or audited. 

Adding extra bedrooms in a basement plus converting a garage gives you an up to code triplex so to speak.

My team code calls everyday!

I looked at a bunch of crumbling row-houses in Baltimore today, and many of them had crumbling and cracked brick, rotted foundation, water damage and squishy floors about to give in, and signs at the door saying the place needs to be rehabbed or boarded within 30 days because of code violation.For a typical row-house that's 12 feet wide and 3 floors in Baltimore city, how would it typically cost1A.

Could you also tell us the zip code or area of Chattanooga the properties are in?

Baltimore city has a convenient site to look up if a property got some code violations.https://cels.baltimorehousing.I...However, it looks like the violation notices there don't show exactly what the issue was.