I have dreamed of developing the lot, but have no professional know-how in evaluating the financials/costs of new construction, permiting, environmental reports, etc. to come to a conclusion if it would be a profitable/worth my time.

Public image - are you responsive to social, community, and environmental concerns9.

Plus, your solution eliminates the floor footprint of the gas and electric heaters, so that is a huge plus too.

Is it also a 2 BR with similar footprint, just fixed up?

O&G Environmental Compliance for 10 years after college.  

Situations in which my knowledge, experience, and expertise allowed me to reach a risk assessment quite different than what was commonly thought to exist.An example combining some of the above was a auto repair facility that was being sold in bankruptcy and had an environmental problem.

Lots of things a new tenant would consider and they may make you deliver a "clean" property (no environmental issues) with no tanks anyway depending on their brand, so lot to consider. 

Just about any QI with a national foot print will be able to help you out with this Joseph. 

I would think you would be able to rebuild but not modify the foundation/foot print of the house? 

When we rehab, we don't even have to get permits unless we change the footprint of the house.I would not recommend flipping.