I use existing layouts to avoid pulling permits.

The previous owner did not get any permits done for the property.  

Thanks Matt R...Not sure how to put a price tag in that 5 unit permit.... if anything it is going to be 30 year out thing...Buying this today is going to incur cash flow loss upfront for years to come... not to say I can't do that....

Current state, no repairs Fire Sale Flip Price if acquired) -minus- Your existing lien -plus- the Now-term lien opportunity you mentioned -plus- any anticipated Soon-term other lien opportunities likely to arise if the property survives through the foreclosure process -plus- Costs to finalize the acquisition.This is your BASE expectation for profit and permits a value judgment for moving forward on any individual lien. 

If you have a "no pet" policy," you are welcome to change the wording to say things like service/assistance animals are permitted with supporting documentation.

Most investors have an over-arching idea that Turnkey means completely renovated (and our minds say completely means a brand-new house), all permits were pulled, a super-professional team and atmosphere with a brick and mortar office, a professional property management company, etc...  

Although, I think the numbers look better on vacation rentals, it is just difficult to find opportunities as the supply of properties is limited due to proximity to beach and permitting with the cities.

Typically its a $40-$60k conversion cost for a typical 6 flat with a basement unit under permit in the Chicago building I have seen done.

My advice get bids, set up demo, have extra subs to back up the guy that doesn't show because he decided to start a different project, and make sure the permits are pulled and checked off, and don't cut a final check till the work is done.

Usually a family member will set up and close apartment, I doubt the person will be permitted to live independently again.