To refinance a property with a low conventional rate you basically need: good credit, stable income on IRS taxes in past two years, equity in property that meets health and safety codes. 

1) That price is reasonable2) You will have to demo the garage anyway if you want to convert to living space, the slab/foundation and existing structural framing will not be up to today's code and engineering requirements.3) No, after/if you convert this to a rentable unit the income you are looking at is not something to throw away for parking.

Would that alter buying options between townhomes/condos and require a lot more in up front capital?

they determined that a lot of the theft was from the workers that worked for the contractors and new the lock box codes coming back and stealing stuff or telling their cousins etc. 3. pull into gas station and have to lock your car when you leave and head on a swivel  or simply do not buy gas there at all to dangerous. its these type of things the locals are raised with and us OUT of state folks have no clue about especially if we were not raised around that environment we simply dont know what we dont know.. 

Might even be able to get the city to stop by and talk to him as he is interfering with health and safety codes that the city has in place. 

I don't write the revised code in any of the 50 states so I don't know why we'd be wondering what I am ok with.In addition, what you are referring to is called a NET Listing.

This sounds like a question for your local code enforcement guy or an attorney, but definitely not something that anyone on this forum is qualified to answer.

Based on your experience can you tell me 3 zip codes that are good cash flowing and 3 zipcodes with an appraisal?

For example the house has a section that used to be a sunroom or screen porch and was added many years ago as part of the house and somehow none of this work was done with papers, also the basement was finished with a bathroom, kitchen and non-compliant bedroom but the entire basement is around 6’8” instead of 7” (minimum per code) so inspector is saying that the entire basement was not suppose to be finished and it sounds like he wants it all removed or to apply for a variance that he is letting me know upfront most likely wont be approved.

@Jorge Vazquez They are fiefdoms and the issue is they are a way for people to avoid dealing with their neighbors and  to overlay more restrictions on local code.