I am not an insurance agent or an attorney but you could call your insurance company and they can let you know your coverage and options.I also carry a personal umbrella insurance policy as added protection just in case.  

The only way I see this working is if the property is purchased below assessed value, the rehab is completed and the property is Re-assessed a d refinanced for the higher value.

@Mike DornemanDue to how the estate administration works, you do have extra protection there.

I was also thinking about going next door to that business to see if they needed any extra space for their dirt business.

Only, Flipper B added solar panels and geothermal heat pumps for energy savings.

Is it because of the extra paperwork/working with section 8 offices.

That gives him an idea what the  marketplace will give and then he uses that information in future ads. 

An extra bath is worth about the same. 

It's a low crime area already but it's extra insurance we like anyway.

Permits, I've talked with the local government and have been told the process essential is talking to every land owner in a 1000 feet, and putting an ad in the local news paper to see if anyone objects.4.