You know this as well since you are from Memphis, but for those that may not - two identical houses in Memphis within 1 street of each other can achieve incredibly different results based on the street you are on.This is even more true for multi-family.

I’m very interested in a lakeside property that consists of the main house (3 small bedrooms and 1.5 bath) and a separate building that consists of 4 identical 400 square foot efficiency apartments.  

Anyone else feel like OP is committing mortgage fraud? 

I bought an identical houses, in Baltimore city, not rented, set up for 2 units. 

You just committed fraud since the agreement you signed is no good. 

Sacramento appraiser's blog about that.We also have about a decade of pent up homeownership demand, the bulk of an entire generation sitting on the sidelines thinking that the "next crash" is right around the corner, and that it'll be identical to 2008 meltdown.

Try searching Google with the name of your favorite home warranty company and the word `complaints' or `fraud'.

I feel it's almost like the BANK is committing fraud at that point. 

Signing contracts with no ability or intention to close is FRAUD

If you don't live there, you are committing mortgage fraud.