Also, the property management costs when you add everything up such as the monthly 8%, lease fee of 75%, renewal fee, bi-annual inspection fee, 15% margin fee on repair etc. seems like a lot and in the end, they make a lot more money on my investment than I do with little to no risk while I am taking all the risks.

I'd also schedule an inspection.

@Tyler Speelman as a real estate broker I would advise you to make the release of the high earnest money conditional upon your acceptance of an inspection, conditional approval from underwriting etc.

I think 3 days on inspection and 21 days financing.Good luck!

From what I'm being told, this addition has been built to code and although this will be confirmed once the inspection is complete, I am trying to better understand the process to convert this property into a legal duplex.

Certain big items, such as complete AC replacement, require a permit inspection in my county. 

You should also get in each unit ASAP to take photos + compare that with their move-in inspection if you have one.

I am a newbie investor, but licensed pest control professional willing to give out free inspections.

Another sinkhole example in the judgement is $16000 for property inspections, and its closed up so you can't inspect the inside.

They don't come and do any inspection of exterior or anything so very easy.