It depends on rural, suburban, or urban core areas how far you go out in evaluation ring of an area.What I look at is violent to non-violent crimes in the area and if the frequency is flat, decreasing, increasing and by what pace.There will always be crime especially tied to population levels.

Once thing that concerns me about Baltimore is that its population has steadily been decreasing since 1950.

Homes have recovered nicely, accidental landlords are selling and kicking their tenants out, which is creating a surplus of tenants and a decreasing number of rental properties.Again, hopeful on the 1,500.

Get a list of mom and pop owned small apartment building owners, offer to be a Master Tenant with an option to purchase, raise the rents over time, decrease expenses over time. 

Now obviously if like your wife you bought long enough ago rising rents have made her property viable but purchase price to rents out here are just nuts especially with the current climate of appreciation.I invest buy and hold out of state but I do so where I grew up and do know the areas so it makes it much more doable.I don't flip myself, but know some that do and what I have heard is that the # of deals has absolutely decreased but that the margins have gone up so the 2 have offset each other.I think were I in your position, evaluate if your flipper friends would be willing to help you break into the market.

You can get in light (low down) and turn the property around by decreasing expenses and increasing rents.Nice to meet a new friend in B.C.!

The back taxes would be handled basically as Ron Climer outlined, but you DO want to pro-rate the taxes for the current tax year, so you decrease the net to seller.

Having said that, why are we seeing a decrease in inventory when the jobs are flat or decreasing in some area.

As this is your first project, and your household income will significantly decrease once construction starts, my guess is you'd be looking at a lender that somehow is interested in the proposed project, would be willing to finish it if you can't (you've spent your reserves), and will be deinitely lending at a high cost.

If you want to decrease occupancy advertise it as a two bedroom with an office or something along those lines.