If the city believes the unit was rented in the past, they will force you to legalize it as they no longer offer demolition permits and San Francisco's ultimate goal is to increase housing stock.On a side note, you can read more about TICs as an investment strategy by searching the BP forums.

I would by real estate in cities that have seen large negative decreases in sales prices but are still positioned for population growth.2.

This brings tourism even higher in these areas based on sheer population proximity. 

The potential income on the timber, and the increasing land price over time.How did you find this deal and how did you negotiate it?

Right now, i'd say leverage is your friend, rates expected to come down, which will only drive demand therefore increasing home prices..

Then literally hundreds of these of come across my desk seeking financing - and typically the pro forma looks great while the actual historical financials show almost no more profit than Simple long term rentals after paying management fees, higher interest rates necessary for these type properties, increased repairs and maintenance, and faster depreciation.There’s also a personal reason I don’t invest in these properties ( I DO finance them).  

The long term trends with jobs and population growth are still very strong.

If you don't want a big city like Calgary or Edmonton; try Lethbridge, Red Deer and a few other cities with populations around 100K. 

Huntsville, Alabama, is rapidly emerging as a top real estate market in the South, driven by its growing population, strong economy, and affordable housing options.

Also, any increases in Real Estate taxes.3.