That was what I thought but Im always trying to make sure Im not being unreasonable with these guys.  

That does not seem unreasonable, what areas are you looking in?

Great realtor to back into values2. builders to get idea of vertical sq ft costs3. land planner/ engineer for the city county state permitting process.So I find out the big rocks.. then hone in a property that seems good.put it into contract .. then I hire a consulting engineer land planner to do a feasablity study.. if your an existing bigger client they usually do them for free .. in exchange to get your work.but most likely you will have to pay for it.. 5 to 10k is what you can expect.this will include what needs to be done for regulatory approvals.will include environmental hurdles IE who you have to hire / do yo need a wetlands study etc.basic take off on infrastructure costs..

That'd be three people and prohibited by your occupancy rule of 2 people max, but that's not an unreasonable number of people to rent your unit and it'd likely be considered a fair housing violation. 

@Andrew KerrThanks for the reply and yes that is true I have heard lots of horror stories, and I was believing that once you got pass the whole hurdle of paper work and inspections then the rest will be smooth

My biggest hurdle right now is the property management in my town is fair at best, I have spoken to a few investors and renters regarding their experiences.

I'd be happy to take private/ hard money, but since its my first flip I'm aware of the hurdle I would need to cross to convince someone to lend me the money. 

So far this has been a very educational experience with some small hurdles along the way.

After a few deals, I think I will seek ways to finance with private money - but there are probably just too many hurdles to make it happen out of the gate.

Would it be unreasonable or illegal to charge my tenant the difference between the two treatments since she didn't notify me?