If you rent that out without a true Certificate of Occupancy, a tenant can sue you for ALL of their rent money back. 

If it was true, then there is a way. 

Years ago, a friend of mine took on a similar challenge in an older neighborhood near Chicago..he opened up the top floor to create a master suite that felt less like a converted attic and more like a boutique hotel room.

Plan my next day 6 most important tasks - I've been on top of this, but still a challenge to get them all crossed offPlus, most importantly, we have 4 projects here in Chicago we are working to bedone before the end of the year so we can start some new projects off on the right foot!

The fact they ask you to do this is not only a red flag for obvious reasons, but also because, they should know better how risky this is for you and if they had true good intentions they would have understood that and not offer you that option.What you can do is tell them..

One of the biggest challenges is keeping the bathroom as carefree as possible.

Quote from @Bruce Woodruff: Yes, you are right; that is true for California..

In my experience, financing fix and flips can be challenging if you do not have a solid insurance company.

You haven't even asked about your BIGGEST challenge - finding "trustworthy" contractors.- Most contractors will cut corners, or worse, once they figure out they won't be watched closely:( Your job will also go to the bottom of their priority list.Monitoring progress is relatively easy: hire that same inspector to go by weekly or before any payments to take a VIDEO of:1) What was done2) Quality of workmanshipOne other thing you didn't ask about, payments to contractors.- They all want 50% down or as much as they can squeeze out of you. 

Challenges?