You're increasing the need for hot and cold air dramatically and it's doubtful the existing system will be adequate.But, in answer to your original question - yes you will need a permit.

If this is financing for a stabilized property rate carries more importance but rate combined with origination fees, pre-payment penalty and term in which you intend on keeping the loan in place are all considerations which together should help in deciding the best financing option.

Originally posted by @Bridger L Logan:Has anyone else had good experiences with a larger house (5/3, 5/2) that has been rented by the room in the Phoenix area or other hot real estate market areas?

I'm originally from BR and still invest heavily and lend there. 

Originally posted by @Brandon Brock: Yes Mr.

For your due diligence, you can also ask to see the tenant's original application and screening reports. 

Originally posted by @John Thedford:@Jay Hinrichs may know of them.

I negotiated through the original contract and then put the rest of the deal together with an existing group of investors.

Your original post has most of the right questions to ask (and find out by yourself) about the developer.

I would be using hard money lending (I've heard it's around 10% with a 1% origination fee) .