It is not permitted to post a link here to my blog, so all I can do is state that I blogged about it.

The problem I think you will encounter has to do with the loan amount to value ratio (LTV) that will be permitted on a non-owner occupied property.

Anthony,no utilities, accounting/legal, licences/permits or advertising?

Additionally the work so far has been done without a building permit.

Once I confirm the numbers and validate the deal, trust me, I will ONLY release rehab funds at certain, pre-defined stages, which normally track the permit process; carpentry/framing, concrete, electrical, plumbing, drywall, finish, final CO, etc.#5 - Oh, let's not forget..., What experience level does the borrower have?

But, there are other things to consider:- Was the conversion permitted?

We are pulling a few permits for new construction in the next few weeks.

In my area their are plenty of guys doing work without permits but if code caught you, their will be real problems and the money you tried to save is now costing you twice.

Who will obtain permits, plans, pay fees?

Be smart and pull permits too, it goes along way on the resale side