Is there any way to file a change of use permit of some sort that would make this business model work? 

Please also feel free to bring an investment, personal financial dilemma, or strategy question, and I am happy to discuss it with you... for entertainment purposes only.

i showed this home to another person first and thought it was a nice solid house and decided to buy this. price was good at the time How did you finance this deal?

Making sure you understand various lender's guidelines, doing your due diligence, actively prospecting, and making sure each loan file closes smoothly while ensuring that both your lender and client are happy is not a walk in the park. 

Unsecured debt, either to you personally, another partner to the project etc. - based on personal Income, Credit, DTI, etc (1-8 days)3.

I personally think out-of-state investing is a top choice.

I’ve been told if you personally close your own account it will affect your credit, and that if a bank closes your account due to inactivity, it does not affect your credit. 

Have you considered a personal loan?

You likely won't be able to take any deductions on your personal income, but real estate does have tax benefits.

Have you considered a personal loan from a local credit union or from SOFI?