That should raise red flags to them, but it doesn't mean they will deny the application.Lastly for my post, the deal needs to make sense to your lenders. 

I am buying a small run down cottage listed on the town field card as a residential single family, but completely covered in red for commercial zone on the town's zoning map, it backs up to a grocery store and is across from a bank. 

Building code wise, it was legal for a 2, but zoning wise, it was a no go for a 3 family.

But according to new zoning code, I don't believe I'll be able to add that bedroom space due to the fixed 30%(?) 

This property just sold two months ago for $104k (big red flag right there, why are the owners selling so quickly?)

We've just had a massive stormwater management program as part of the federal water consent decree, and all around us (though not WashPo) is a federal Opportunity Zone (great tax savings similar to a 1031 exchange but without some of the restrictions; Google it).Happy to discuss anytime.

The zoning was in place for the project already, I just had to complete entitlements and move forward with construction.

Seeking a good local architect and contractor to talk to regarding zoning/entitlements etc.  

The county records still indicate that it is a duplex but the conversion was obviously done years ago before zoning came into affect.

The zoning says it is CRO so I don't believe I would have any zoning problems, mostly lending...2.