The lender will want a certified contractor to do the work and they in-turn have to work with the lender's inspector for draws, permits, etc.

Purchase price: $345,000 Cash invested: $5,000 Sale price: $453,500 The property didn't need any major rehab, just legal work, permit correction and cleanup.

Not pulling permits when they are supposed to and getting fined by the city.

It has a detached ADU (with a legal permit) but only half of the ADU was constructed with the remaining half devoted to parking for the garage.

Also, most of the items on your list require more skill, permitting, and are time consuming. 

@Igor Gjorgjiev I am building a hillside and (4 other projects in permitting, all hillside) in LA.

We found that the zoning did not permit a tri-plex on the site and we were unable to get the city to issue a rebuilt letter for a tri-plex as was required by our earlier lender through a residential mortgage.

Instead of patting the pm on the back , I’d question how this was allowed to fester and how the pm was so care less over my asset and permitted this foolishness to take place .

Keep in mind adding square footage is more involved with permits and adds a lot of time to your holding period.

You will only need this for the time period you estimate it will take to get your plans and permits completed.