I have a construction loan for a rehab project for primary residence. 

@Annette Steele, are you asking about new construction costs or renovations?

Total income: $1,135Cost to house hack: $680 / month I bought this property with a construction loan thru my flip LLC for 20% down on the purchase price and the reno was 100% funded by the loan.

This is not the best neighborhood, but I am seeing a lot of development in the area (new construction builds etc).

If "yes," were the approved plans followed during the actual construction?

I would research your particular materials and construction and determine the likely risk, but I would seriously consider if your tenant is worth spending this kind of money on and what your plan would be for the tenant and project if you actually have a documented case of asbestos, which may require professional mitigation if you think you might have a liability situation with your tenant.  

As I'm sure you know construction is booming wait till it slows down....Plus is there even a demand for this in your area?

I work in construction doing residential remodeling.

They are merely a way for the town to track construction for the future and to collect money.

new construction there is a mandatory 1 year warranty by the builder by code in most states.then we buy the 2 10 as a parting gift.. home warrenties that you buy after market I suspect would not cover this.. regardless I would push back on this issue..