I scheduled an inspection (owner hadn't seen it in two years) and discovered a lot of bad things.

Can anyone recommend a local bank or financial institution that would be willing to work with us? 

If your asking about lending institutions I am not aware of any that are.Time value of money crushed returns on loans that long.

My plan is to buy and hold.PUB02121 of the MO Department of Natural Resources states that “demolition or renovation to an institutional, commercial, public, industrial or residential structure (excluding exempt residential structures as described in the preceding section) will involve greater than 160 square feet, 260 linear feet, or 35 cubic feet of regulated asbestos containing materials, then the removal of the asbestos is regulated by the department” but the City Planning and Development Guidelines for KC state “any person undertaking the demolition or renovation of any structure shall employ Missouri registered contractors and certified workers”.It seems to me that the city regulation requires you to contract a certified asbestos abatement professional while the DNR will only require this action when meeting a certain threshold of asbestos material but I am not sure.I should add that I am not an experienced real estate investor nor do I work in the real estate industry but I want to go into this with my eyes open and I am sure I will have many more questions in the future.

.#2: Taxpayer B leases and lives in a $2,000/month apartment used as a personal residence.  6 months into the 12 month lease, the landlord discovers a new "higher and best use" for the building. 

Whereas the due on sale clause is contractual whereby the lender could just forego foreclosure because the borrower is paying, in your case if the lender discovered you were living in the property on a fix and flip loan they could be in violation of federal law.

Germain Depository Institutions act of 1982 forbids banks from triggering the due on sale clause for transfers to an inter vivos trust. 

@Tyrone Hood Hey Tyrone, first is challenge your mind and how you have been thinking up until you discovered Real Estate Investing.

Hamilton County sells both Tax Liens in bulk to institutional investors who then foreclose after they hold them for a year or more. 

Zelle is fast but not all financial institutions use it Nd some charge (my bank stated charging $15 per transaction) A s I understand it Venmo does not allow ‘business’ transactions but I may be wrong on that.