@Solomon Oh might want to rework your numbers.

When her crew left the job, they left me a house with about 65% done per the original contract scope, a huge pile of construction debris in the driveway, and many items that need significant rework.

The appraisals aren't worse, if anything they're better because of how the appeal process works when you ask them to rework the appraisal. 

Seems like I may need to re-work some plans..

Like Nathan said If it doesn't make money when you buy it, than rework the deal till it does or walk away.

When it did, I moved upstairs, renoved fully the garden apartment and re-worked the floor plan.

Haven't purchased anything yet, have a couple that I am targeting, but need some guidance to know the price point and viability of getting a renovation loan, in order to use this strategy, otherwise, I'll need to rework the numbers and the strategy.

There's always options to think differently, find homes that have potential for an extra bedroom or have opportunities to rework spaces.

Thank you, will keep permitting fees in mind, I ran my numbers without thinking about permit fees have to rework the numbers, as well sorry for the late reply. 

I can still get that on flips, but my flips these days are full guts with new electric, plumbing, drywall, rework layouts, all new everything...1% rule is hard to achieve today.