The basement is a walkout and based on what I gathered if it has an external exit, this one doesn't have a window just door, it shall be treated as bedroom provided I provide a closet.

Long term average or even recent returns can be a misleading baseline, lots of external reasons that number can be much less than 8% for any given time.

My preference was to have the C-Corp external to the LP and act as the GP.

Was it an external factor like flooding?

Example external storage area conveniently located where it can be converted to a walk in closet as a later time.Part of the exercise is knowing the various regulations. 

What I am trying to understand is, are there any specific permissions required by the County to construct those cottages externally or in the basement?

You cannot force the tenants to follow the guidelines/rules, but you have them to fall back upon when you need to see damages or bring in an external cleaning service.

I also agree with and advise people to have several escape clauses in the event of something external negatively affecting the business, for sure. 

._ If the review is about external aspects of the listing.

Properties sold to Fundamental Partners for about 12% below foreclosure value.I wonder if 12% will be enough to weather the storm.I believe these are Fed Low Income Rent controlled, I wonder how much longer that will last (with no ability to raise the rents).There looks to be quite a bit of Physical Damage to some of the brick walls, and the Trash from the pics looks to be piling up to the clouds (Citation Level).I wonder what the occupancy level is, as there seems to be lot of mailbox doors swinging in the wind.Were these guys hand picked by the forecloser to take this over, or did it go to open bid with another lender underwriting a new loan?