The structure is an old house and the zoning in the area allows for a business or residential. 

Check with the FEMA flood maps to see what zone it is and if there is much risk there

The home will be worth less due to the fact that the primary buyer will be a investor, like yourself, as opposed to a home buyer" is an unreasonable statement - - even a war-zone property has value.

Yes, but not one with stain glass and all, Mennonite church/ two open floors. it was in an area that was zoned for 2 family, i went before the zoning board as a condition to buying the property, and was able to convert it to a 2 family /  2 levels, student rental ( got 8 bedrooms out of it).

However, I will not buy in a " war zone".

The structure is an old house and the zoning in the area allows for a business or residential.

@Thomas Hickey Your question gets into the gray zone.

Everyone's comfort zone is different.

(It's been there for over 30 years) I'd like to make it a legal 4 unit but it is an R3 zoning and I had been told that the lot size would not accommodate it.

There's no room at this point for a rehabber to buy, fix, and sell without going in the red so properties continue to be used as low income rentals.