As a standard protocol before closing we had done our walk-through on a three family house hack in northern NJ.

Your agent should have been on top of both of these because in CT where I am this is a standard part of any closing and I am assuming WI is probably similar. 

Yes, the processing time is a killer, but I cannot let it become a deal killer.I may need to use one of my hard money people to buy the property to stop the clock, then look at either doing a real estate contract with them or a standard purchase from them. 

I will add that your thought on what defines a bedroom in Mpls is not correct, and I suggest you review the city information for landlords as it details what requirements must be meet to be considered a legal bedroom by rental license standards. 

Currently the property is under contract with me and we are going thru challenges when I discovered the income instability with the latest rent roll.  

I don’t know any investor who does this.In non judicial states it still must be done properlyI am looking at a loan that was foreclosed on years ago and it was just discovered the foreclosure was invalidated and it’s a mess and has to be redone and will cost 3x the original as they have to reform the mortgage etc.

Because I live there, I got a standard conventional conforming loan. 

I would love to review both appraisals; I deal with this all the time - as an agent and as an investor.Our single family rental properties are very similar, same age, size, same finishes, same kitchen, same flooring - we have a standard.

This is industry standard, so many brokers/advisors simply work as part of investor relations, so fees aren't increased by working via a broker. 

We for instance, use a number of title companies (run by licensed attorneys) that have their own standard wholesaling contracts that have the appropriate disclosures and close them regularly.