Alternatively you can also read the books in the following Biggerpockets page - https://www.biggerpockets.com/blog/wp-content/uploads/2018/11/Best-Real-Estate-Books-Ever.pdfI would say spend enough time in grinding the axe before you start chopping the tree.  

If you choose that route, you could use some of that $20k towards improvements on a fixer.The alternative would be to find other low priced metros to play the cash flow game.  

Any ways around this hiccup or alternate methods of procuring a loan would be greatly appreciated.

Alternatively, if the property doesn't have an ADU, but the owner would like to add one, it may not require a zoning change, if the property is owner-occupied and they ADU can meet the setback requirements.   

This could be a time to look at alternatives that can be managed by 3rd parties.

I don't like it either, but there is no good alternative.  

@Anthony Robinson you absolutely need to do a bit more due diligence and find some alternative options (try and find at least 2-3 total options), especially if you are going to spend close to $100k.

Potential alternative to hard money. 

Alternatively, the lot seems to be worth about $15K, and he's only asking $10K.

@Jon SchwartzPeople probably said the same thing about the alternative minimum tac (AMT).