There is also a tool that will let you determine an estimate of what taxes might go upto.In order to do what you are mentioning above, it is called a drop-and-swap.

I understand some of the possible implications of making this move would be a likely higher interest rate and lower NOI on the new investment but would like to get additional feedback on what other things I should take into consideration with this possible move from those out there who might have some experience in this realm.

Also, be sure to clearly outline the agreement you have with your investor in a signed document so that there is no confusion on the back end.

Is there anyone in the area that is a provider of one of these services interested in renting a facility near the City Hall?

If I were the seller or listing agent, you wouldnt be buying the property, not just because of not providing the DU, but if the lenders response was that, it would immediately make me think that lender is completely incompetent and there was no way that deal would get to closing. 

I'm sorry I don't remember all the details, but I think there were several offers to assist or resources. 

There will always be competition for value-add deals so it's important to network with right people to find opportunities off of Zillow and the MLS. 

Is there anyone else that is actively purchasing them?  

Here is an example of a recent project I was able to fund.Purchase Price- $35,000Rehab- $30,000Arv $100,000We funded $25,000 @ purchase and $30,000 for repairs for a total loan size of $55,000.If you're living in the midwest I think that there are great opportunities to purchase 2 to 4 unit properties and rent them out I would stay out of Illinois the tenant laws are not favorable to you as a landlord.

There are more construction loans available, then loans to purchase the land.