However, the inspector mentioned that the 2nd and 3rd floors are labeled as "Artist Dwellings," though he wasn’t sure what that fully entails.He suggested applying for a special permit to present the space as artist studios or dwellings, with the hope of eventually converting them into long-term rental (LTR) apartments under that designation.

First of all, there is absolutely no correlation between transacting with or even being a wholesaler and successfully completing a BRRRR, but that's besides the point I hope to get across. 

If you're adding a lot of value to them that really doesn't make sense for Section 8 in my mind.To be honest, it sounds like you have a large reposition on your hands and will be a difficult and long process unfortunately.

Many people have great success being an active investor. 

Are there any terms we should add to the transaction language to protect ourselves from the seller backing out of the contract?

I've crafted terms that are a win for me and for my buyer, but my intention is to hold the deed of the property until the buyers's note to me is paid in full, exactly as the banks do.   

In my specific situation, the original developer is no longer in the area, and with no HOA or planning and zoning…..what if anything could be enforced against my plans for short term rental?

Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

For any permitting issues, it seems like it is ok as long any unauthorized alterations took place before 1982, when the permitting process went in place. 

Are you a successful real estate investor in or near Springfield, Illinois?