First purchase Calculations

[Kenny Kuramoto]

Hi I'm into a contract of a property that costs $135000. Rehab will cost about $50k. I want to know couple things.

1. Property is a 2x1. If im flipping it and turning the garage to 3rd bedroom(its already used as one but terrible quality). Flipping the property can i label it as 3x1 or it has to be permit build 3rd bedroom to sell it as such.

2. Hard Money are they all 65% arv for brand new investors? I called mofin and 2 others. Seems like it's all 65%.

Reason why I'm asking is the property is $240k arv at 3x1. 65%x$240k=$156k. All in reno plus harmony I'm assuming is $196ish. I still have to put in $40k. This property is only a good flip but not brrrr. Flipping at $240k-$185k= $55k-fees. 

what's everyone's thoughts on this. Thanks!