I am not disagreeing with you, just looking for guidance on how I can protect myself, as well as avoid any issues.

I wasn’t aware of those insurance issues.

In those instances, the owner can avoid all the bankruptcy related issues Mike mentions by withdrawing the bankruptcy, and you may find that solves that issue.

My question is that if I get approval from the local town and the property variances are changed would it be allowed to convert said property into a 5 or even a 6 flex without any issues arising from the VA loan lender?

Is it an issue if the area is rural and not suburban?

Not a problem for AZ, but it might be an issue in your neck of the woods.

Having gotten my own inspection we solved all of the issues the next inspector will see (shoutout @Mindy Jensen for that tip.)

In poking around initially here there seemed to be an outstanding question of the asset being owned by an LLC being an issue? 

It's in a pretty "high demand" area in Silicon Valley so I don't foresee an issue selling it, it's more about identifying the replacement property that will be challenging.

If you ever showed up before a judge because a codes inspector brought an issue against you, i think the court would be very hard pressed to prove you don't live somewhere.That's just my opinion.