The zoning associate recommended I start the application for a conditional use permit and stated the process could take up to two and a half months and is contingent upon neighbors within 200 ft being okay with the conditional use permit.

If one or both of the buildings burn down, will the city let you rebuild both buildings, or will you be limited in what you can put on there?

I have also told acquaintances who are looking for housing for a family member, that federal Fair Housing requires that I treat everyone the same in terms of application, screening and qualifications. 

At least that's how I understood it.Our situation also called for a snatch truck (due to space limitations).  

Enough about that.Our history as real estate investors is limited to a 2 year stint as long distance landlords about 15 years ago that we broke even on and the purchase/sale of a small piece of land 2 years ago. 

Do you have her original application? 

Selling with a tennat in place will limit your market considerably and generally investors will pay less than home owners.

Once you know the income you can calculate your NOI and then apply a whatever cap rate is applicable for your area and product type to find the ARV, and you can get a sense of what you need to get the property for to make it a deal. 

I agree with @Lance LvovskyIf you were just a money partner and invested in the partnership as a limited partner, you would be an investor.

Don't limit your comps to just duplexes - 4 units and down is just considered "residential."