You choice from those and we proceed to develop this until its of a level that it can be used for permit filing and be constructed by a Contractor.     

There are lots of rules , regulations ,permits ,warranty , certifications to be a HVAC contractor , plus labor costs are high as are the costs of running a business .

Occupancy permit.

From what I understand Arlington has passed an ordinance that will begin near the end of the year that requires a permit in order to operate an AirBnB if it is not in a "tourist zone" which they designate as with 1 mile of the major attractions such as the ballparks etc.

In Ontario we can evict if we have a building permit to do extensive work.

My question is basically, what would be a fair monetary breakdown if I will be providing the funding (permits, city fees, plans, public works, and the actual construction)....my ballpark estimate is that all this will cost 2.2-2.4 million if I build nice quality townhouse style 3 bed 3.5 bath townhouse style units.Should I offer him 70/30?

Failing that, you might have to look for private financing.You should also talk with the town to be sure that the property is permitted for use as a rooming house.

can i rent out any house that i own or does it need a permit or something to legally be rented out?

I also have a property close to 90% occupied that I'd consider flipping to any Bay Area investor looking for a small MF deal (11 units with fully permitted quadraplex development)

They are licensed and insured, pull permits and do the work according to the engineering report.