This becomes an issue of cocern in higher priced properties with larger seconds, but if your loan is less than the lot value, you're probably in a much better position.Another issue that could apply to you is the recent CA investor requirements and being a qualified investor.

After that I think you can go to court to appeal.If you house has a vacant house notice then the water dept is required by law to turn off the water and you should not have to pay for water.

This property meets all the requirements our bank told us it needs to meet, but they are only willing to finance 600-700 thousand.

Probably not.So, what do they know about the requirements to meet city requirements in turning this property into a 3-unit?

Arlington has a very strict area near the entertainment district for STR and requires registration.https://www.arlingtontx.gov/city_hall/departments/planning_d...Haslethttps://ecode360.com/41493162I like Haslet, but not sure there are any demand drivers for STR other than maybe the occasional race at the TMS. 

Please consult with a mortgage expert about that requirement before making a decision as this is not advice, I am not an expert.

If you live in one side and want to STR the other, that won't work because each unit is its own primary residence.That said, I have clients who have successfully rented out a guest house/ADU in LA on a short-term basis and since they occupy the main residence, they are not bound by the 120 day limit to fulfill the primary residence occupancy requirements.

Is any rehab required? 

Lastly, if there is imputed equity, some lenders will give you credit for this but usually requires a story, and not merely being purchased well.

Investors might require a business banking account with high transaction limits to facilitate buying, selling, and managing properties without running into daily or monthly caps.2.