The proverb of old says "Whoever walks in integrity walks securely, but he who makes his ways crooked will be found out", it is as applicable today as it was thousands of years ago.I think Brian is correct, the reason many get in trouble because they read all of the misinformation on the web, there are some yea-sayers out-there (even here on BP, but most of the times they get corrected) who will tell you "yes, you can do this" and lead others into trouble.

Furthermore, when you decide to sell these types of properties you will have a very limited buyer pool.

Great rates and application process.

If I'm reading the rules correctly, under 10,000 square feet, RH lots are limited to 1 unit/2,000 with maximum building coverage of 85%.

My limited experience suggests that it should be around $230-$240k, but I'd sure like a second or third opinion on the matter.

Best way to offset this is to pay any credit cards before the statement cuts so they report zero balance and try to raise the limits thus lowering your overall credit utilization.

Check with the Planning and Zoning Boards to make sure no applications for any objectionable "use" are pending for your neighborhood. 

So you install a furnace, A/C system finding out your permit application (~$1000) is denied to operate but you installed the new systems.

I am only doing one unit as it is 4 bedrooms and has higher pool of applicants with young children.

Limit your exposures and variables by staying local.