My understanding is over 4 units is considered commercial, and there’s a lot more financial work that’s done with them.I had a 3-unit just done for $675, but it was done as residential... so I think that’s why.

That will help you understand if it is worth it and what your actual return on this project is.

It’s smart to know exactly where you stand and get a better understand the whole process from a lender you trust.As someone else commented, it’s a pretty competitive market out there and no seller is going to accept an offer that doesn’t come alongside a preapproval.

The cash flow isn't great but I understand that it's a by product of the 15yr mortgage and what feels like a B class property. 

If they don’t understand, meet with a different attorney that only does real estate.

The third unit has a long term (4+ years from what I understand) section 8 tenant paying lower than market rate rent with all utilities paid by the owner.

I understand that this journey will not be easy, but I'd rather struggle and work hard towards my future rather than someone else's.

Do you need a lawyer to do this or can you just write it down in easy to understand wording?

Making sense of the deal and understanding their track record is important, of course, but I believe you should develop trust BEFORE you ever invest.  

I understand you guys are from flyover or the least-coast-- that does not mean you get a free pass on being arbitrarily retarded.Someone asking you to change a rule means something-- they actually read the rules.