You need to make sure there is room on the electrical panel to add larger appliances and also plumbing is easily accessible (to keep costs down). 

If you have the cash and the credit and the deal scenario works (meaning the project cost is less than 75% of the ARV) then you should get 80% - 85% of the purchase, 100% rehab held in escrow, at about 2 points with like a 1500 service fee.

The goal in the future is to get the permit and add the value for a future refinance.I have called the county and building department and they said that I will need blueprints of the alterations and submit them for approval and get all the inspections in place (I know this will be a headache and can be very costly).

I wasn't unprepared—I had a clear idea of my MAO,  ARV, and estimated repair costs.

Basically, he is able to avoid all the bank requirements and cut out the middle-man syndication. 

Alternatively there are also asset based lenders that do not require DSCR calculation or income verification, that can be less costly than hard money, and fully amortizing.

Be aware of additional costs such as service charges, registration fees, and maintenance fees.- Property Specifications and Quality: Detailed Specifications: Get a detailed specification of the property, including materials, finishes, and fittings.

Louis, Richmond, and Louisville are markets with high growth potential, strong demand, and moderate entry costs.

Given that property costs are high in San Diego.

My recommendation would be to own residential first so you have a much better understanding of the costs to own real estate.