I was going to run an STR in the home and he would enjoy a higher rent than from a regular LTR rental AND he would have the property managed too.All was going beautifully.

Being a natural cynic, it takes work to find the positive.  

Regularly treat the line with a product like this: https://www.amazon.com/Roebic-FRK-1LB-Foaming-Killer-1-Pound...Save up money because you will need to replace that line eventually.

CAP from my calculation is +10% so naturally I am going to scrutinize.

I wrote another post last week, and will continue to do so regularly to chronicle my parking experience. 

I own regular apartments as well and I've found that I don't spend any more time managing the rooming house than I do with regular apartments. 

I lived in SF for 8yrs and am out there regularly (including next week).

Naturally, when worker housing was built it was built in the cheapest place that was close by, and back then that was always in the places that flooded.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Modern lumber is also a lot more prone to termite damage as it is softer and easier to consume whereas old lumber is extremely resinous and naturally termite resistant.