However, I realized real estate is somewhat of a closed system to outsiders (being careful of my language).

The statutory language is pretty clear here that this is need based.As in, have you or anyone in your family been diagnosed with COVID-19 (via a CDC approved test)? 

Where I do agree with John is that many of the south suburbs are very poorly mismanaged and have very horrific and irrational real estate regulations -- you will not want to deal with the municipal officials in many of these towns while doing a rehab, particularly as a rookie 1,000 miles away.

So I will preface this as conversation only, and would like to get a lawyers viewpoint and maybe a city official, but my understanding is, it's a unit that is allowed but not legally rentable.

Or is there some kind of request through the lender to officially approve it?

I've been reading and trying to find if there is an exemption or added language to the Mrs.

We've already begun the process so I haven't gone to a lawyer to draw up any official agreements but we do have an agreement he created outlining the profit split. 

@Jeff Copeland @Wayne Brooks Thank you both for your responses, I am glad to hear that "Joint Tenants with rights" is common language.

@Tony Merchan technically if the tenant didn't give you anything in writing saying they were leaving, they are not officially out.

However there may be adjustment due to the official date of the tax appraisal that may be different from the purchase date.I have multiple time challenged and won the tax assessed value based on comp or appraisal.