Additionally I need an inspection every two years. 

@Toby FellowsGet an attorney and have them complete the process for you would be my recommendation.While it is something you could do, I always recommend spending a few hundred bucks to make sure it’s done and done properly

For a standard 3/2 with 1,200 sqft we usually spend 50-80k on a full rehab, 10-15k holding cost, 15-20% profit before tax, 7% cost of sale.

It's not great either but they are stating if given this deal once I have 5 properties; they will allow me to convert my 5 properties (I have an LLC but the properties are all in my name not in the LLC yet) over to a commercial loan (5 properties min) and give me a line of credit to continue buying additional properties.

Permitting for additional bedrooms and garage conversions requires compliance with zoning and building codes.

Quote from @Hamed Rahimi: With so few properties, you'll spend more time learning how to use the tools than you will save from using them.Software is a common question on BiggerPockets.

If the purchase price is 70% of the home's final sale price, what portion of the additional 30% is the $ spent on the flip and what portion is the average net gain?

I'm bringing on my friend as a consultant to further our knowledge base and create some additional comfortability with the financial investors.

In terms of Costs associated with an LLC-Roughly like $100 to file with the secretary of state in Ohio if you wanted to do it yourself-Cost for your accountant to prep a tax return at the end of the year for that LLC (depends on your accountant)-Cost of a higher interest rate with a DSCR loan -Maybe more advanced, but if you have more rentals the cost of additional bookkeeping software like having to pay for additional quick books accounts.

There will be additional court filings in the coming weeks.