With that being said, I am a local lender in Baltimore so have some vetted contractors I could introduce you to if the renovation route is something you want to look into. 

ThanksTalk to knowledgeable general contractors and get estimates for converting it into a legal unit.

When you purchase a property under a "contract for deed" (sometimes known as installment land contract, a land contract, or a land sales contract), that is when your name does not go on title.

Got new renter, but the 2nd contractor cut some corners, took about $10k to finish it and the others. 

I didn’t see it until it was time to meet with the contractors.

For example, if your contractor quotes $7K for windows but the price jumps to $10K when it’s time to order, you’d have to cover that extra $3K.A contingency budget allows for situations like this.

As I pay contractors, for materials, etc., I add it in the check register and class is to the WIP account.

How can we effectively vet contractors?

And also I just finished 2 flips with my contractor there and ready to sell.

Every jurisdiction is different, but in general it's usually a civil engineer and/or architect and/or general contractor who can give you an idea of what is feasible.