Add additional units I started my research by going through the zoning ordinance , reached out to a land use attorney .

Your friend may be good at landscaping and carpentry...but there is a lot involved in a full-fledged fix and flip.You should protect your investment and hire an additional person to oversee the project and let your friend learn on what he needs to look out for.

Real estate is a great addition to a portfolio but at your stage/level/income, you need liquidity more than anything. 

The additional room attached to the property, we were told that it wasn't legal by the owner's son(the owner passed away). 

But you won't be able to know from zillow or redfin if there were any seller concessions or what type of financing did the seller use, and some additional info provided in the listing that zillow or redfin won't reveal. 

It will be a major rehab and I will be doing additions to the house.

It will be a major rehab and I will be doing additions to the house.

Then with the money left over, I would use that to buy an additional property or two. 

The additional risk that a property like this brings to an investor should never be overlooked.There is nothing wrong with a new investor buying a simple home in good condition with good financing terms.

In addition to the above questions, here's a list of of tips and tricks that you should do to verify the information provided by the syndicator.