We have had several ultra bad laws passed in the last few years (minimum wage laws, gun laws, business regulation of various sorts, etc), but they're limited in scope, and if they don't effect you personally it's easy for the overall situation to be pretty great still.

The actual margins are largely going to depend on the level of finish that your client intends to complete relative to comps - no need to put luxury finish in an area where the attention to detail may not be as well-appreciated and vice versa. 

Currently it's not possible to build anything other than class AA+ luxury apartments without LIHTC, bonds, etc.

Does anyone here have an idea how to make money out of a rental mansion? 

I'd go ultra conservative on your costs like repairs, CAPEX, and vacancy.

What I fear greatly is an ultra-conservative appraiser adding in a pile of expenses that don't exist, and sinking my plans. 

It's 1800 Square feet, very nice 10 yr. old 4 beds 2.5 baths, 1942.00 sqft property for only  177K... it's a gorgeous home with luxury finishes!!! 

Obtain hard money of $250k, convert back to a single family luxury home, and sell for a potential 71% Cash-on-Cash Return.4.

USC's student population is almost 50% out of state, and I knew a lot of out-of-state friends that would pay top dollar to live in the best areas.There's also a rather robust off-campus luxury apartment market.

The rehab cost may be more, but like I said I'm trying to be ultra conservative with everything.