the other day i took the time to try and get a codes violation list from my local city hall to at least get a list going and do some cold calling! 

Some of it makes me go wow how is that legal, but it's black and white in the tax code and passes audit.

The septic needs to be covered, the roof needs to be replaced, aluminum wiring needs to be upgraded from 60amps to 200amps with romex according to code.

Everything is up to code, except the foundation, which is unique.Any thoughts or ideas appreciated..... :-) Have you tried a local bank yet? 

This requires a thoroughly understanding of the city's development ordinances, compared to a typical investment or fix and flip, so I feel like I have an edge here since my architecture job requires me to understand these ordinances and codes for every client project I take on.After a few years of doing this while also networking, forming relationships, and learning more about the financial side of real estate, I'd like to get into small scale infill ground up developments including single and small multi-family. 

You could focus on certain ZIP codes.

In many municipalities this triggers zoning, licensing, or code requirements tied to boarding houses, rooming houses, or transient use.

The truth is that its not actually "vague interpretation" among lenders - its pretty clear cut if you dive into the regulatory code - no prepayment is allowed for 1 or 2 unit properties with loan amounts under $329,411 (new 2026 threshold update), while prepayment is allowed for 3+ units or 1 or 2 units with loan amounts above that figure. 

If it were me, I would emphasise the consequences of them doing this (like dying in a fire), then have them sign a disclosure that reads something like this:                              "Basement Use Restriction: The basement area is finished but does not meet legal requirements for sleeping quarters or bedrooms under local building codes due to the absence of a required egress window/door (fire escape).

You can't really invest by zip code in Toledo, although it might be a decent starting point to get a general sense of what things sell and rent for.