With the new 2022 conforming loan limits increasing too, this means MORE buyers will be able to buy these assets , creating more demand , therefore pushing prices up higher.  

For example, legal entities such as a LLC are not eligible for conforming residential loans. 

Also, some to many investors don't use conforming residential loans because of the strict income requirements and everything else since they don't "look" like your typical homebuyer financially.Hope that helps. 

@Corey FarnsworthMaybe start here:  https://www.biggerpockets.com/...First, unless you are investing with non-spousal partners, the LLC provides no tax advantages.Legal entities such as LLC's are not eligible for conforming residential loans. 

I did more research and found it is a non conforming lot as far as zoning goes.

The entitlement is based off of the county in which the new home to be purchased is located, the number of units (SFH-quadplex) as well as an amount that is more or less the conforming loan limit from HUD.

But if you looked at the 'allowable uses' for the SFR zone and it says that a guest house may be constructed then your parcel is in conformance with the zoning.

Conforming loans backed by Fannie/Freddie are only made to individuals and not business's so anything outside of this would be a commercial or private loan.

So if I were to go the OZ route with the example 1M gain it would look something like this:B/C CA is "Non-conforming" to OZ, PAY THE CA PORTION OF THE TAX IMMEDIATELY -- ABOUT $105k   (i.e. pay by 04/15/2022)- TAXES ON REMAINING GAIN DUE TO IRS about $345K.- Those taxes will be due 12/31/2026 (pay by 04/15/2027?)

if its use as a duplex pre-dates the zoning ordinance it may well fall under "legal non-conforming use".