It's your first deal, you don't have a contracting network, you don't have an architect, you've likely never go through a permitting process, if 4-plexes are impossible to find it might have to do with restrictive zoning, etc.  

It's a pretty big deal to change these, generally requiring not only the quorum of homeowners, but also specific notice requirements, a certain time period for discussion, etc.The Covenants, Conditions and Restrictions (CC&Rs) also usually require a quorum of homeowners to change.  

An effective marketing campaign cannot be begun or sustained without a detailed and goal-oriented plan.

I have checked the lender's website and it says: Due to insurance restrictions and issues with construction work around tenants, EDC will not fund properties that are occupied at the time of purchase.Is this the case with all hard money lenders or just this one?

It looks like the anticorruption campaign was in full swing in 2013 and there was a lot of talk about tracing assets and plugging holes.

We have watering restrictions here.If it's not in the lease then you can't make the tenant spend the extra money on the water bill.  

If you don't see anything on the market, you can start up a mailing campaign to send letters to all of the multi family owners asking if they have any interest in selling.

Jeremy, perhaps you guys could partner up on a campaign to find deals.

@Amira KabbaraFor a sample DM campaign: Purchase a list of specific owners you are targeting on list source.

Thanks @Bryan Clapper you are right about Hugo, the par that we are in is in the Mahtomedi school district and there are very few properties and new homes available due to the parcel size restrictions.