I have found the contractors also appreciate doing it that way because they don't have to lay out the money for the materials.

You just need to basically lay out the agreement for the loan in the promissory note.

They will scrutinize your material, layout, and contractors. 2nd, if any layout deviates from the original plan, you have to find a structural engineer to prove to them the change won’t compromise the structural integrity of the building. 3rd, your finished materials especially flooring must meet their sound proof standards.

It had a half bath, and we carved out a laundry room in the addition and still had space for an eating area.The layout of the small 3 bed 1 bath, now having an additional half bath, laundry no longer in the basement, and an eating area, has made it very popular. 

The tax value of the home is approx $193k, and the ARV is around $265k as it sits with the current layout.

@Taylor Campbell @Patrick Mellea - here are some diagrams that might help you further on this quest:Asset Protection Decision Diagram - to help assess the need for asset protection, and what to implement: https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-decision-diagramAsset Protection Onion Diagram - what, when, and at what cost one should implement in terms of asset protection - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-onion-diagram-v2What is needed for complete asset protection OR the domains that need to be intersected to find asset protection - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-spectrum-diagramHow a fully implemented asset protection layout might look. - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-structuresIf you want more details, from an investor perspective, PM me.

There are two big drawback to this home which is the layout (it is a traditional colonial and on the main floor there are 5 different types of flooring) and the kitchen is dated.  

Get your local engineering firm to provide engineering stamped layout drawings with utilities.3.  

look at the flex units in the townhouses(extremely hard to get) but they are allowed to run a business out of the bottom and they have 4 parking. depending on the model the layout can easily be split into 2 units.  

Except I might not even show you the vacant one.Nothing wrong with him showing you the vacant one and then waiting until there's an actual contract in place or at least it appears that you guys are going to be able to come to an agreement on price shows you the other one and disturb the tenant.Especially if the units have the same layout.