It's just a VERY unfortunate circumstance but she practiced RE Law for over 30 plus years.

Under what circumstances does this not make sense?

However I don't think it's necessarily investing in the Warren Buffett sense of the word.I'm interested in if everyone thinks this is a distinction worth  making?

Here is the text of the article in case you can't see it:By Ben van der Meer – Staff Writer, Sacramento Business JournalFeb 22, 2018, 4:43pm PSTIn a sign that escalating rents in the city of Sacramento may have reached a tipping point, a group has filed with the city clerk’s office to collect signatures for a rent control measure.The ballot measure would allow rents within the city to rise by no more than the percentage increase of Consumer Price Index, with a baseline set at the earlier of Feb. 20 or whenever a tenant first occupies a unit.A notice of intent to circulate petitions to put the measure on the ballot was filed Tuesday.Landlords would be able to evict tenants only under certain circumstances, such as failure to pay rent or violating lease terms.

So now two kids in my house, seems relevant to ask for more deposit under the circumstances.

A realistic summation of the financials, tailored to whatever the circumstances are the house presents.

However in most circumstances I've seen, the tenant takes the space and completes the fit-out on their own with their own Architect/Engineer & Contractor. 

The example you cited is likely to be very rare, I do not know the circumstances surrounding it but my guess would be that that deal was financed for 5 years, maybe 10 or whoever got it was extremely fortunate.

Will he/she ignore that to always calculate in some reserves or will those mitigating circumstances actually be considered?

This is along the lines of another 'ninja in training' idea, but I may have heard of someone being an 'administrative consultant' for another, not a PM.There may be a few distinct things one cannot do without being licensed.