Make sure your DD is complete off course as recordings and permits if done wrong or not current can become a nightmare.

I would have interest in investing also if there were clear codes permitting.  

I mean I see new construction there selling for what we have to pay just for permits

However, you are not permitted to actually acquire, close and take legal title to the property on your own through a Reverse 1031 Exchange. 

There were a few reasons why I did this:1) One of the local municipalities stopped allowing LLCs to pull permits as the homeowner.2) The real estate market around here was really hot and I would often have numerous offers on my rehabs.

I understand there's a shortage of contractors, etc. in the area and that processing the permits can take a long time.

I look at the ordinance and discover that commercial use isn't allowed in the zone, but a "home occupation" is allowed by special permit.

This is because prop stream pulls from public records which is sometimes updated because people do additions and stuff and don't get permits for their work. 

Did you pull permits? 

You want to find out what the bonding requirements are, inspections, CO process, General permit fees, proffers, water/sewer tap fees and the process of setting taps and connecting, do you need to install manholes or fire hydrants.