You still have flooring, cabinets, bathrooms, plumbing, insulation, paint, etc, so all that cost remains the same it would seem. 

I have minimal plumbing experience and thought it would cost me way more than what the actual bill was.

If you can befriend and connect with them you can "borrow/steal" their resources such as reputable contractors, agents etc.

If you're pulling a permit already for plumbing changes, just get the permit for the room conversions at the same time.

I am a contractor and we live in a great neighborhood so the house would be a great investment if we can purchase at the right price. as it sits the house is prob worth 100-150k.

I do plumbing inspections on the way in, along with full home inspections, and sometimes we do a pre-sale home inspection on the way out before the sale and we offer that as part of the listing package.

You will likely need to pull out and cap the bathroom plumbing if the bathroom was not approved and remove the stove since the city is already on notice of it.

No, none of my contractors were labeled/considered to be corporations.

And if they are a hobbyist/part-time builder, then they should engage the proper professionals, i.e. a title officer, civil engineer, architect, contractor et al to assist in reviewing the project's feasibility.

Have also done work in DC and Maryland and would say Virginia has significant benefits over DC and Maryland because it is more business friendly and jurisdictions are willing to work with not against developers on projects I mentioned as well as you mentioned With the federal government and government contractors not going away - area is great for investment.