The title of this thread says "residential" , so is it even allowed in a residential zoning?

But that can be analyzed in advance to get a good handle on things and see if 203k is a fit.  203k allows for as little as 3.5% down, whereas conventional rehab options require 25% down on 3-4units and 15% on 2units.Hope that helps!

These are actually considered to be real estate for 1031 purposes but allow you to exit traditional real estate ownership.The IRA is a powerful tool but not really applicable here. 

Fannie Mae's Homestyle will allow structural renovations to be paid when completed. 

If they want out of it, you should have a termination clause that allows them to leave but compensates you for the losses or potential losses.

likely wont be allowed to  re use  appraisal ...your best bet to have a chance doing this will be to  work with same lender that just completed the  refinance …...in general  appraisals are  valid for 120 days

This will allow him to give you a better picture of steps to take to limit your tax exposure.

@John Mainwaring The Lake County Recorders office will allow you access but you have to pay for a one day access, they don't offer it for free.

Take photos of the inside if possible, show that it is inhumane and maybe talk to the town about what you're allowed to do.

When I bought my first property the previous owner allowed cats.