This is a question for my new Yorkers who know about NYC permits.

I don't know VA laws, but I imagine you'd either need your own GC license, or you'd have to hire someone who is a licensed GC in the state -- it's this person who would pull your permits and be on the hook for all building code compliance issues.As for private lenders, these are typically people you know who are providing capital based on their relationship and trust in you as an investor. 

All the numbers below are direct quotes from lenders, contractors, and insurance agents (exceptthe insurance expense as a rental).Purchase: $25,000Renovation: $21,000 (includes permits, no dumpster needed)Closing Costs: $1250 (closing costs, appraisal for HML, title, etc.)Holding costs: $4168.78--6 months interest at 14% $2734.50--Insurance quote for vacant house--$1034.28--Utilities--$400Total --$51,418.78Points—$1577.22 (6 points)Down Payment--$12,000Amount owed to HML--$40,996FLIP ANALYSISARV: $80,000Realtor commission 6%--$4800Transfer Tax, Closing costs, etc. --$5000Total Debits--$9800Profit--$70,200(net proceeds)-$52,996 (HML+downpayment)=$17,204 profitRENTAL ANALYSISLoan Amount--$52,996--I will do a cash-out refinance through a commercial lender at 75% of the appraisal value, or $60,000.

The fact that this area has all city services (water and sewer), that the house was not located in the middle of the lot, and that the city permitted us to divide the lot all made it a great deal for us!

You should budget about $5K - $7500 for the surveying and permitting.

Work with the existing structure and spend some time and money to see if you can rehab it and convert to two units with a special permit. 

No permits I assume.  

What if they have contacts to speed up permits?

The population has and continues to slightly decrease)Nearest majore metropolitan area (1 million +) is 47 miles away.Median household income is $34,288 (it was $33,124 in year 2000)Estimated median house or condo value in 2012 was $78,505Median gross rent in 2012 was $664Unemployment rate: 5.9%Median age is 37.3Under 5 years - 2,431 - 6.6%5 to 9 years - 2,225 - 6.0%10 to 14 years - 2,129 - 5.8%15 to 19 years - 2,308 - 6.3%20 to 24 years - 2,739 - 7.4%25 to 29 years - 2,812 - 7.6%30 to 34 years - 2,687 - 7.3%35 to 39 years - 2,486 - 6.7%40 to 44 years - 2,614 - 7.1%45 to 49 years - 2,830 - 7.7%50 to 54 years - 2,706 - 7.3%55 to 59 years - 2,309 - 6.3%60 to 64 years - 1,936 - 5.3%65 to 69 years - 1,301 - 3.5%70 to 74 years - 1,006 - 2.7%75 to 79 years - 848 - 2.3%80 to 84 years - 771 - 2.1%85 years and over - 699 - 1.9%Single-family new house construction building permits:2009: 3 buildings, average cost $133,2002010: 5 buildings, average cost $229,2002011: 22 buildings, average cost $107,3002012: 2 buildings, average cost $60,000Housing Occupancy:Total housing units 15,066Occupied housing units 12,868 - 85.4%Vacant housing units 2,198 - 14.6For rent - 816 - 5.4Rented, not occupied - 31 - 0.2For sale only - 263 - 1.7Sold, not occupied - 48 - 0.3Homeowner vacancy rate 3.4%Rental vacancy rate 12.9Properties:Property A - 2/1 - 640 square feet - $25,000Property B - 2/1 - 1040 sq ft - $22,000Property C - 2/1 - 1070 sq ft - $20,000Property D - 3/1.5 - 1248 sq ft - $22,000Properties all well maintaned and rented, or rent ready.

The other rejected the appraisal saying he called the city and the structure is a SFR converted without permits to a triplex - date of conversion unknown .