The fact that this area has all city services (water and sewer), that the house was not located in the middle of the lot, and that the city permitted us to divide the lot all made it a great deal for us!

You should budget about $5K - $7500 for the surveying and permitting.

Work with the existing structure and spend some time and money to see if you can rehab it and convert to two units with a special permit. 

No permits I assume.  

What if they have contacts to speed up permits?

The population has and continues to slightly decrease)Nearest majore metropolitan area (1 million +) is 47 miles away.Median household income is $34,288 (it was $33,124 in year 2000)Estimated median house or condo value in 2012 was $78,505Median gross rent in 2012 was $664Unemployment rate: 5.9%Median age is 37.3Under 5 years - 2,431 - 6.6%5 to 9 years - 2,225 - 6.0%10 to 14 years - 2,129 - 5.8%15 to 19 years - 2,308 - 6.3%20 to 24 years - 2,739 - 7.4%25 to 29 years - 2,812 - 7.6%30 to 34 years - 2,687 - 7.3%35 to 39 years - 2,486 - 6.7%40 to 44 years - 2,614 - 7.1%45 to 49 years - 2,830 - 7.7%50 to 54 years - 2,706 - 7.3%55 to 59 years - 2,309 - 6.3%60 to 64 years - 1,936 - 5.3%65 to 69 years - 1,301 - 3.5%70 to 74 years - 1,006 - 2.7%75 to 79 years - 848 - 2.3%80 to 84 years - 771 - 2.1%85 years and over - 699 - 1.9%Single-family new house construction building permits:2009: 3 buildings, average cost $133,2002010: 5 buildings, average cost $229,2002011: 22 buildings, average cost $107,3002012: 2 buildings, average cost $60,000Housing Occupancy:Total housing units 15,066Occupied housing units 12,868 - 85.4%Vacant housing units 2,198 - 14.6For rent - 816 - 5.4Rented, not occupied - 31 - 0.2For sale only - 263 - 1.7Sold, not occupied - 48 - 0.3Homeowner vacancy rate 3.4%Rental vacancy rate 12.9Properties:Property A - 2/1 - 640 square feet - $25,000Property B - 2/1 - 1040 sq ft - $22,000Property C - 2/1 - 1070 sq ft - $20,000Property D - 3/1.5 - 1248 sq ft - $22,000Properties all well maintaned and rented, or rent ready.

The other rejected the appraisal saying he called the city and the structure is a SFR converted without permits to a triplex - date of conversion unknown .

I have just established an LLC for my SDIRA. The purpose is to use this LLC to buy and hold a SFR rental. I intend to manage the property myself. Are there any restrictions against using a credit or debit card with th...

I haven't invested in the Lease w/Option to Purchase field, so take this as a gut feeling.I would stipulate that if the tenant/purchaser plans on making any improvements for which your city requires permits, that the tenant/purchaser go through the permit+inspection process. 

Am I permitted to search and contact them on BP ?