I just bought a leasehold condo in the Marco Polo building a couple weeks ago -- it's all about the comps and making sure there's enough time remaining on the lease to still make it a marketable product.

I'm not sure which lender you would have spoken with that said that you couldn't get a loan but maybe that lender didn't have investor friendly products. 

Remember the intent in taking title to the property must be to hold for productive use.  

However if you are allowed to take the property, it will get back into productive use.Did you bid more than the lien amount?

Barring overlays, that is a commodity product.

I'm not saying purchase their management products, unless you want to, but check out the pill method or replace your mortgage on youtube). 

use a no income verification loan product.

I just want to make sure I'm getting a good product.

If it is the city's zoning the short answer is it depends...I don't know for sure, but my guess is that the loan would depend on the product, not on the city's zoning.

@Cory Newton research "Homestyle" loans if you want a standard conventional product for renovation work where you don't have to live in the home.