2-4 units are valued based on comps just like single family houses.Some lenders will consider income but ultimately comps will outweigh everything.

Capital gains would be very likely if you sold to her if this was a flip and the taxes on that would outweigh the better interest rate she could get for sure.

However, the costs in repairs and addition to the house far outweighs the return we would get in ARV.

Overall it seems the rents are a bit below the okanagan, but the price point outweighs that.What do these mid-island towns have to support economic growth, net migration and of course jobs?

Also wasn't sure if income to rent was more important or credit score - but it sounds like in this case, not a big enough difference in the credit score to outweigh the higher income. 

These family values outweigh any monetary value.

Rent may not scale as quickly as home values, but the appreciation value increase would then far outweigh the thinner margin for cash flow.  

To me the liability would outweigh the benefit. 

The biggest kicker is that it says the lots have to be double the size of what we expected, cutting our total number of buildable units in half and thus making the expense far outweigh the benefit.  

It seems as if the risk is outweighing the reward.