Paul but can give you some general information.The city planning and zoning commission generally tackles zoning variances and conditional use permits. 

@Sherry McQuage That is easy:1) Don't buy stupid sh*t and save your money to get ready for the deals2) Learn from books, but more importantly learn from people3) And the 1 universal truism to all real estate investors, start as early as you can.The sooner a person does #1 and #2, the sooner he/she can tackle #3

I understand the concern about me being a newbie and this huge project being the first thing I tackle.

Be certain to use a moisture barrier between the bottom plate and concrete, and even consider a pressure-treated bottom plate.As far as messing around with the facade, I have not yet worked with one personally, so I would work with a pro first to learn more before I begin tackling it solo.  

Gary Keller of Keller Williams wrote a book called "Shift - How Top Real Estate Agents Tackle Tough Times", and in Chapter 10 he wrote about using Creative Financing to help Sellers and Buyers.

Agreed that it would be better (and likely much less expensive) to tackle from the outside, but it's good to know the options for dealing with the issue on the interior.

The roommates are planning on leaving soon, so she wouldn't have money to pay the rent by herself either way once she is back.Any suggestions on how to tackle this situation outside of consulting legal resources? 

I worked for a large commercial developers early in my career, however tackling the project yourself becomes far more difficult.

I've been obsessed with fix and flips for many years but unable to fund them alone, so I have yet to tackle one.  

I manufacture fishing tackle and I have noticed HUGE increases in raw materials.