Generally these taxes are pass thru to the guest anyway (permitting is not but usually only a few hundred dollars)...however, if you are operating currently out of compliance and not collecting, you might want to save some aside in case the tax man come a calling to your town for past taxes due that you can no longer collect from the guest

It could work, yet making illegal bedrooms on main floor makes me nervous, Plus philly requires rent license or permit. 

The borough has an ordinance in place where I can't get a rental permit if I'm more than 15 miles away (I'm 21), so I'd have to use a PM locally.

Sounds like you’ve got a good start on all of your due diligence items just make sure you do not close on the land until after you get your building permit. 

Development makes me nervous in certain markets where delays from permitting and other issues can really hurt the project ROI, however, some projects can be very lucrative.

Due to permitting with the City I only did non structural work to this property.We opened up the kitchen, added a kitchenette downstairs, and remodeled all the bathrooms.

There is an easement between you and the neighbor permitting the neighbor to park on your property, did I understand that correctly?

I should add, this is permitted by the Ohio Revised Code and most communities take advantage of it to keep from losing money on bad tenants.

Hey @Elaine Lai - if that work is permitted and you have 45k locked in (I suggest making sure your contractor blesses the work done to it) you should lock that thing down at 95k.

Will some authority check that the codes are met prior to issuing work permit?