I would think the devil is in the details of the other terms, but how about:$260k cash or,$263k owner finance with 30 year amortization, 5% interest and 5 year term or,$265k with 30% down and 70% bank finance. 

I've heard some instances where the City allows the homeowner to get away with a sprinkler in only the new unit, but I don't think you can bank on that.Drawings/Permits - The City will require the new unit to be permitted, and may require a full set of drawings and plans.

I then have them with a small bank in their portfolio. 

It's definitely a city that should continue to see appreciation as investors and developers come in and put their money to work.I wouldn't do any land-banking there if you don't have patient capital though.But if the properties you're analyzing are cash flowing now then I would definitely say pull the trigger.

Beyond that, you should be able to find a lender who will work with you, make some calls, visit local and regional banks and credit unions.

Also, any recommendations on investor friendly realtors, banks, property mgt, plumbers, ect.....send 'em over!

You might have different options if property was held in an LLC and the transactions were real bank transactions to your LLC account, but even then, its a wash since LLC is pass through to personal and you would be recording both an expense and an income resulting in no benefit(not a tax professional. just opinion.)source:https://pocketsense.com/can-declare-rental-properties-primary-residences-8116.html

@Jeremy Woods if we really want to get in the weeds...An LLC owner can be held personally liable if he or she: personally and directly injures someonepersonally guarantees a bank loan or a business debt on which the LLC defaultsfails to deposit taxes withheld from employees' wagesintentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else, ortreats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.Wouldn't buying in your name then transferring to the LLC meet the two bold comments?

And guess who is then on the hook for the money that was in YOUR bank account.

How do I find out which bank to contact to purchase it?