When I did a lot of work for banks, the Fannie/Freddie guidelines required the bank to foreclose when a due-on-sale clause got triggered.

@Yogev Finegoz have you pulled the trigger?

I'm still a few years away from pulling the trigger on a property, but. .. ahh, to take on that much risk on a large sum of money is daunting. 

We do have an administrator who files the annual compliance paperwork and is our "go to" for questions.

You must have firm bids with reputable general contractors/home builders, unless you have fairly extensive construction experience.And of course, depending on the market when you are ready to pull the trigger, you may have to presell the second unit. 

@Phillip Dwyer right...well that just made it a whole lot more difficult...I was aware of the before 1974 for HUD compliance. can you expand on "rent restricted" for me please...and real or personal propertyand for some reason its very hard to find comp in some areas...I mean some of these resell for 180k plus....

I almost pulled the trigger on a townhouse in the NOVA area today for a house-hack, but pulled back as I felt I needed to research some more to be smart about my decisions.

MF ALL NEED WORK, utilities separated/upgraded & are being subjected to very strict fire safety compliance (we had to design, install & add 24/7 fire sprinkler system monitoring).

My losses will far exceed $1k so I'll be in compliance with EIDL I suspect, but whos to know the SBA has not contacted me and if like PPP the terms will probably have been changed post applying. 

But most importantly, get with a local mentor and next most importantly, pull the trigger once you are ready.