What are the local zoning requirements for an endeavor like this?

Red flag?

There’s a lot of red flags potentially raised with the IRS if it’s a non-arms length transaction - especially if it’s “too good” of a deal.

Also look at water delivery capacity and sewer capacity as well as potential parking issues.Checking the zoning to be sure they allow a duplex would also be a good idea.Good Luck!

I offered slightly below asking and got it, despite the market being red hot.

I offered slightly below asking and got it, despite the market being red hot.

Generally speaking, you are correct: conventional loans have more red tape behind them - bank statements, credit reports, appraisals, etc.

Find out what the zoning allows for that land, ie can you sub divide. 

I am ready to purchase my first few properties in Chattanooga.I travel to Chatt fairly often but would like to have a more solid feel for the area in terms of where to place my first investment, I am currently looking in Red Bank.Though I don’t plan to rent immediately..I will likely house hack for a year (ideally with a MIL suite or basement) and rent it out afterwards while I then focus on getting a stronger foothold in wholesaling.

It is zoned for a multiple family and at one time was a duplex.