Maybe you need to set your profit goal higher to insure your misses come in higher.Take pride in finishing your 4th profitable flip.

If it needs to be converted, can he just pull the necessary system permits (splitting electrical, HVAC) vs going through a complete build permit since the space is already a finished livable space?

I just finished @Brandon Turner's How to Evaluate and Offer on Rental Properties webinar, so I wanted to apply that knowledge in the market that I'm interested in, Tacoma, WA. 

You should be able to get close to $2,000/side in the current market if each side is as big as you say and they are very updated with higher end finishes.

These would be medium to high end finishes.

I am just finishing up a divorce and selling my home.

It may seem "off" to put in class B finishes in a class C neighborhood but this is what is working.

I just finished Scott Trench's book and if you haven't read it, you might want to.

I do recommend to use inspection, especially since I am abroad investor.In addition, the inspection report help me to make sure the contractor quote covered all major issues, and I also use the inspector to visit during the rehab to make sure the contractor finished each construction stage.Investing ~$250 in inspection in compare to the money you invest in buying and rehabbing is not major and reduce your risk.Good luck.

It's in great condition and mostly up-to-date, but the kitchen is dated ('70s/80s), and it has an attic level that was just begun to be finished and then left off sometime in the '70s or '80s.