......and permits.

They said I had to pull a permit to convert from a 3 to a 2.

But if we post "NO FIREARMS PERMITTED ON THESE PREMISES" what does that say to the 'bad guys'? 

No permits is one way, but I don't recommend that. 

So here's the (abridged) story so far...Facts:Purchased Two Family in Belmar in April (Two Single Family Homes on One Lot) Using 203k loan with both homes needing "Gut Job"Confirmed Legal Two Family with Tax, Agent, Closing Attorney, and Seller DisclosureHired 203k Consultant (formal written agreement) to prepare a formal Scope of Work for Project with GC leveraging and singing offThe homes had indications of structural issues (through inspection pre-purchase) and all parties were aware before closingUltimately had to hire Architects with PE in-house to draw plans to repair structures using concrete slabsCalled Local Building Inspector and told him the profile of the multifamily homes and that we found major additional issues when demo-ing | He said he would look to only make sure they were up to current code.Spoke again before we submitted permits to tell him about the project and he seemed "fine" as long as it was up to code and just a repair with no foundational footprint change | No exterior walls are being moved, sq. foot remains unchanged, no floors added.The loan is FHA 203k so one of the units will be a primary residence (actually the back unit)Permits were submitted almost two weeks ago with only simple questions returned so far from zoning (the first step in Belmar)Issue:PE told me that he was surprised that town was allowing me to due to a rehab of this size considering the two-family structure has the "backyard" style home which they apparently no longer like.

if the zoning and permit in your area work then its worth it.

Aside from permits and zoning, what are some other considerations I should think about or issues you might have run into?

Best to work just outside of Nevada City/Grass Valley though from a permit cost and restriction perspective.

I’m curious as to some insight community may have with regard to how the investments can be negotiated using the resources of the company I own (i.e manpower, equipment, Managment and legalities (permits,etc) has at its disposal.

You should consider the permitting process wherever this is, because it's entirely likely that everything mechanical will end up having to go through a new permitting process more or less the same way as a new build.