This project is essentially a complete gut that will include addition of roughly 700 SQF, new roof, siding, landscaping, privacy fence, hardwood flooring installation, interior re-design into an open concept floor plan, upgraded kitchen with granite counters, new cabinets, stainless steel appliances, etc.

The exempted properties are up to 2 years with an additional 25% interest after the first year making the interest rate 50%. 

It might be good to have a tenant who is doing maintainance and oversight for a rental discount even whilst the property management company is away. 

I've got the architect's drawings ready to go, we're about to pull permits, but I know they don't have the cash to get past tearing down the illegal 2nd story addition and closing up the second floor (ext framing, siding, roofing).

Do we need permits for any additions to the house to be "official" on the MLS listing?  

Other lenders tack on additional requirements.

Additionally, does anyone own/invest in Finneytown?  

Otherwise, you're just guessing.I can tell you in my area there's a pretty decent discount, usually more than the cost of adding central heat and air.

I am upper 30s and looking at this for additional income and possibly a career change.

I know I will have to pay incomes taxes as apart of this conversion, but I've been doing some reading and can't seem to understand if I will also be hit with additional taxes as a result of something called "pro-rata rule".