What if you need to exit early due to lack of performance, personal issues, etc.?

In this scenario and in most situations where there is a sub to or wrap, the 2nd borrower lacks the capacity to obtain financing in the first place so by definition, the risk is increased. 

So this doesn't seem right to me...if I see "new construction" as a buyer, I:a) assume the home has never been occupied, andb) that licensed contractors were used to build all aspects to state code, to offset the lack of required inspections.I know homeowners can do their own work, but shouldn't that imply occupancy and be listed as previously owned home vs. new construction?

You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds.

Anyone lacking that discipline probably isn't an investor at all!

When you say you are looking at different properties for the best deal, you are signing up for a year of analysis paralysis and lack of focus.

I also don't know if there's a specific process we have to go through with the city for it to be recognized as a duplex down.Basically, I just don't know if the status as an illegal garden unit (the lack of ceiling height and correct zoning) prevents me legally from using the space for either of these ideas and legally, or if it's just dead space. 

The rents are relatively low, appreciation has stagnated, lack of economic vibrance, and diversity of economy.

Basically, I just don't know if the status as an illegal garden unit (the lack of ceiling height and zoning allowance) prevents me legally from using the space for anything at all. 

You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds.