Yep - I used to hear buyers offer 50% less for any non-permitted living space areas. 

I'd bet if there were a good field of competition the price would drop

Originally the bank offered 5, I asked for 10.  

I’m looking at doing a master lease deal in Alberta on a mid sized multifamily so I would appreciate any onsite you are willing to offer.  

I would focus on "Ugly inventory" but would pass an appraisal and not be "Subject to" so that I can renovate and refinance on the ARV in as little as 6 months to pull out my initial capital and enough to put down on the next REI.On the flip side Indiana and Ohio would also offer a sale price to cash flow ratio since you can still find a great deal in both states.  

I read this last night from “The Book on Rental Property Investing” by Brandon Turner: Break even on cash flow or lose money on cash flow, and you are on a path to financial ruin.I’ll repeat myself one last time: Buy rental properties that offer cash flow today.I’m interested to know whether experienced investors Agree/disagree and why? 

I’m a CPA and my have no preference, but only recently signed up to Xero just to have that ability to offer to a client.

You can do residential, but its a ton of work and no matter what, there is tons of competition.

You could focus on entering smaller or less competitive markets where your capital goes further, such as investing in affordable multifamily properties or cash-flowing rentals out of state.

This is likely the reason you're not seeing many lenders offer it.