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More specifically, they didn't want a small 7K cash advance from the bank appearing as if it was used to purchase the home. 

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Based on the wording in the code you quoted, it appears the intent of the Town is to get rid of this use as soon as they can.  

Not sure if you've been to the duplex yet but that might be one reason why it's been on the market a while with what at first glimpse appears to be good numbers. 2.

My question is how oten should you mail to owners without appearing annoying or harassing?

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If they did not like the appearance they should not have moved in.

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