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 ?

Your agreement with the screening service will stipulate that you are not permitted to distribute copies of the reports to anybody. 

Then he said did I pull all the rental permits, electrical and hvac permits.