The city also confirms if the utilities have capacity which they do.Its a simple case of NIMBYs having a huge voice in this jurisdiction. you are doing everything right. just file a couple lawsuits get a good lawyer and keep going. 

One month of vacancy will cost you $2,600 + $200 utilities.

As a would be individual landlord with just a one unit single family property I don’t know I can stomach the risk or withstand a financial assault resulting from an eviction process for a non-paying tenant (or tenants that do extensive damage).I am seriously considering bowing out and selling.

What have you been paying for utilities?

You can tell that the lender isn't granting this extension under the provisions of the loan's 1-year extension options.  

What you want to avoid is a lengthy contract with extension options.

It's been great - the property is 100% paid off and the house is worth 300-340k generating approx $2300/mo (that's after utilities/management fees etc.)I'm considering selling the property to buy 3 more within the same price range in the same market. 

If you find you are unable to raise the money for an all-cash purchase, switching gears to Fannie will only work if you have a LONG time to close in your PSA or have many extension options (which usually require more hard earnest money.)

Why can't we have one, especially if we could have permitted separate utilities?

Completely eliminated noise complaints from the lower level and reduced utility costs.