It's a different market one is about consistent cash flow and another is about speculating on appreciation.

That would be a long-term speculative move.I do find it hard to believe that an 8-unit property isn't zoned properly.

Until Detroit gets good leadership, has money to hire 4x the police force and crime decrease for about 5-8 consecutive years, its a speculative investment. 

The question is would you rather have greater returns now or speculate on appreciation in the future. 

But in real estates, we don't speculate on appreciation of property but focus on either building capital or cash flow through by value addition. 

I will speculate.

Perhaps investors are willing to buy with lower cap rates, perhaps investors are willing to speculate more, perhaps there are rent control rules/laws that need to be factored into the analysis, etc. 

The point being is that you have to look at things as is not speculate about tomorrow. 

You should call them up and ask them, just like you've asked here, and they can give you the straight scoop.That won't stop me from speculating, though :-) I think you will find that:Unless they have clearly explained this is a renovation loan, that they are expecting the repairs to be done prior to closing.That if this is a renovation loan, they won't permit you and your dad to do the work.They won't require AC, but they will require heat.Once you call them and get the information straight from them, be sure to let us know what you find out! 

Why speculate and postulate what the title company would want to transfer title.