Watch the market place forums too, it's the "Count Down To Launch" LOL.There are several types of conventional options, the "full credit", "step up", "financed option" (actually 2 ways), "set up option" "declining credit option"  each having acceptable variations and the American Option (a favorite of the gurus) and the European Option described, both may employ aspects of the different types. 

Evaluate the owner's expenses and add on anything they may have not counted for, ex. reserve to replace, cost for marketing, accounting, legal fees, etc.What is the area cap rate?

You would be very lucky to get to the 1% rule, and I would count out the idea of 2% entirely.  

I don't feel comfortable doing any flipping yet because I don't want to risk loosing money because I have a little girl and a fiancé that count on my income that I can't risk. 

For example, you see a lot of older homes or units near the beach creating higher-better use with maximizing unit count, subdividing lots, or assembling lots for larger developments.

If you yourself are the labor, then the only way to count it in the cost of the construction, is if you bill the construction.

My questions is if banks count into the lending scenarios the rental income when factoring in the applicants income.

As a newbie I would love to have all the RE and business related news in one site, you guys count on us to find leads, just need to figure it out how to make professional news out of them.What do you think, BiggerPockets  community?

Unfortunately a number of CA counties populate individual condo records with unit counts for the complex.

You can count me in.