Definately ask your father in law lots of questions. 

Depends on how habitable is defined in your region.

A better understanding of the basis for the setback reg. should allow you to define how best to structure your application, what information you should submit and what justification you can present to support the approval of your request.B.

Depends on Age and condition of the property, and quality of tenants.CapEx (10%) Until I have the property inspected to determine the current condition of all major components and appliances.  

The main component is that it has to be propotional. 

With wholesaling you have to master more components.

Getting money is not the hardest part, it's defining and executing the conversion.

@Eric MatsudaI define the term value as buying low in relation to sales price, and the ability to rehab and increase rents , which cash flows to attract future investor at higher sales price.I don't see value in downtown due to the neighborhood being more run down and less like that an investor will fix up and flip.

We buy cash flows but we also include a component of leverage. 

- The word "profit" needs to be defined, as it can mean many different things depending on your point of view in this case.- Does the down-payment on #2 equate to the equity he's giving you?