I haven't done one like this, but I would agree an addendum is the best way to add the extra details.

It would be considered a 2 bedroom with a "flex space" which means you have one extra bedroom to rent.

***THIS IS SUPER IMPORTANT as if you forgot this, you'll ended up having to pay extra $$$ or clean it up yourself***3.

It’s likely that some contractors will offer a sign-off service for a fee, allowing flippers to comply with the letter of the law without significant extra labor costs.

If you’re new to flipping, aligning with a mentor and real estate professional ie (Realtor/Mortgage Broker) who has experience with flips can provide extra insights, helping you mitigate risks.

You’ll want to check out the PA Code's Chapter 2800 for the standards around licensing, safety, and staffing requirements, and the Assisted Living Residence Regulatory Compliance Guide can provide extra insight.We actually have a local team here in Allentown that has worked on several of these conversions, so if you'd like some guidance or just want to chat through the process, feel free to reach out.

So most investors I know are fine with this.I have seen some who will stack an additional LLC on top of it...to be "extra safe" in their minds.

Much will depend on the price of the property, for sub $100k I’d expect to pay something extra. 

But some advice already said.1) Learn how to reduce your expenses2) Pay every month like you would be a tenant 3) Find other ways to make additional money - does it have a guarge, maybe rent that out for extra cash flow? 

Make sure to have thorough inspections done and factor in extra reserves just in case.