Welcome @Elise Burns to the Bigger Pockets community.Check out the free "How to Flip Houses" under the 'Learn' tab.

1) i know how to build it... my biggest concern is the permits.. how hard is it to turn a 2 bed to 5 bed.. permit wise.2) also how much more can you charge if you have 3 extra bedrooms?

The story behind this guy was he had an extra property that he had to kick his son out of because of drugs and such.I asked him if he would sell it for what he owed on it and he said yes.

You may want to watch September 14, 2015 webinar titled How to Analyze A Fix And Flip Deal (And Avoid Getting Burned).

Personally,I always prefer a licensed electrician who can pull the appropriate permits and get them closed out correctly; remember, electricians are by and large the only trade who can literally burn your house down, and in my home inspections electrical is generally an area that always has deficiencies.

That's really not much work for an extra 10% LTV.

So while I like to see underwritten deals (on the top sites where the due diligence means something), because there is an extra level of due diligence going on, I also look at the ones that don't do this, and just apply more due diligence myself.

I've run my calculations and it appears to be an excellent return.What sort of extra due diligence (if any) should I do for section 8 specifically?

I've run my calculations and it appears to be an excellent return.What sort of extra due diligence (if any) should I do for section 8 specifically?

Where's my pen and paper lol@Curt SmithI personally really like what you said about putting in the extra sweat-work in...