It is zoned as a single family and it was previously under contract before it fell through because the appraisal did not go through for a conventIonal loan since it is split up as a duplex.

That sounds like an FHA loan and you might already know this, but that loan requires an owner occupant. 

We took our 50K maximum loan allowance from my wife’s 401K for d/p of two properties we bought last year.

I am going to be relocating out of state for work soon and have a question about the likelihood I would qualify for another loan.

I include, Loan to Value, Cash on Cash. 

Can you get a conventional 5% loan or an FHA loan if you are living in another house? 

I am not aware of being able to put the money back if you took it out unless you are talking about taking a loan against your 401K.Will this project be your first rehab?

@Katie HuynhOk I took at look at this...here is my 2 cents, and my evaluation (a little differently).Considering the area and going rents, a lesser decent rent at that property is about $1,800, minus (-) $272 per month for taxes, -$200 per month for minimum profit, - $83 per month for expected insurance = gives me a budget of $1,245 in loan + other costs to work with. 

Given that LA is an appreciation market, What are your thoughts on going with an IO loan with up to 10 yrs of IO if I plan on selling in 5-8 y years?  

IRS never redeems its so rare as to never happen.. but for sure you cant get a new loan on it for 120 days or sell it.. so if that's an issue you should pass.we liked IRS liens kept the folks that did not know how it really works or could not keep their capital out 120 days.. got some smokin deals this way