And, yes, I don't want to accuse anyone of wrongdoing before I find out more, but I have a feeling something shady might be going on with the fees and this committee of one...When I was restoring homes in my hometown of Minneapolis the city was cool with drawings on napkins and the permit fees were reasonable.

Back of napkin, I'd put this at a $800-$1000 loss each month.It is a lousy flip as well.Walk away from this deal, there is nothing worth investigating here.  

Great suggestion Aaron.Although I'd probalby still have to use the ol' numbers,l on a napkin method lol!

The more times you take a deep dive running the numbers getting experienced you can start using "paper napkin" numbers to make deal analysis easier/quicker.

There is a clause about the tenant's maintenance responsibilities that says the tenant will keep the premises clean, sanitary and in good condition.

I'm just curious how the income from the sale would be taxed for some back of napkin calculations. 

Back of the napkin, you can estimate them like so:Purchase price (or assessed value, whichever is newer) x .06 for a rental x millage which is often .45 or so, depending on the county and district. 

Price point, area/location, individual investors abilities or finances, individual investor's risk tolerance or business plan, level of rehab, etc.As an example, the 70% rule (more appropriately should be named "70% guideline), is a simple back of the napkin analysis and is NOT ever to be used to make your final purchase decision.

I guess the reason is that I'm looking for a back-of-the-napkin calculation if a home is worth flipping. 

It's nasty, it's ugly, but the material and the technology have been proven since 1945 in sanitary systems.