But, I wouldn't waste a lot of time on it. 

@Hattie DizmondThere are no restrictions on how long you have to hold a HUD property that was contacted as an investorWhich Asset Manager were you able to get to allow an assignment and removal of your name on a HUD contract ?

However you also will be letting all of that built up equity go to waste.

Get them to remove the old shingles-all of them. 

Your life is not worth wasting over this stuff. 

Hey Todd,So the down payment for a Conventional Owner occupied 2 unit is 15% this will still have PMI as that is removed at 80% LTV.There are 2 options to get a down payment less than the 15%.

Some say no way waste of money, some say yes, always, never own real estate w/o it)My opinion is yes, it is always best to own real estate in an corporate structure and to get insurance to cover yourself from liability.  

Remove 2 first floor walls with engineered headers and added a half bath on the first floor.

Those that made money are those that bought a longtime ago and the properties are paid for, and even them if they are stuck with low paying tenants under control they are struggling.You can easily make 10% return on your investment elsewhere and don't have to struggle with removing non paying tenants like in SM or in California as a whole.

If you included any contact info or encouragement of people contacting you or your agency outside of the marketplace, that is why your post would be removed.