Because it is your first flip, try to run worst-case scenario numbers: 12 months length of the loan: ~$24,000 cost; add a 20% contingency cost overrun to the $65k rehab estimate: ~$78,000 cost. what if the market drops ~10% by the time you list for sale: ARV: ~$346,000.346,000 arv-219,000 acquisition-24,000 financing-78,000 rehab= 25,000 left over (from this amount, subtract settlement costs on the buy & sell side, taxes, LLC registration, insurance, etc)Here's a great tool to get a baseline for a margin of safety for rehabbing: https://www.biggerpockets.com/house-flip-estimation-calculator

This is why developers buy with a safety net and safe margins.  

But we come to the table with all cash, experience, and are ready to move.My advice to you would be to keep in mind that in any state/metro area/city you can find high and low cap rates but you trade off for them, i.e. location, safety, schools, crime, property age, property condition, etc. 

The way to make more money that way is to avoid too many improvements but stick to health and safety issues for repairs. 

If the carpet was new prior, it shouldn't have been trashed after 17months, if it's just at the end of its life you may want to start budgeting that in.

So it's not only about difficulty and additional funds turning units after a smoker leaves, but also safety.  

This is a health and safety matter due to the amount of flies and other issues that come with excessive poop that is left out in the open.  

Probably better to go to the local city building and safety and ask hypothetically if they were to convert the garage would the city allow it and what would the requirements be before making any upgrades or changes to the garage.

Additionally, proper disclosures, pool addendum and safety compliance are all ways to reduce the level of liability as well. 

She is an account manager and I manage a safety consulting firm in the oil & gas industry.Our primary focus is going to be residential property for now, although, our first investment was commercial / residential.