This forum is just another classic example of why this website is so good. 

Some suburbs are aging, and almost immediately are being re-purposed as more affordable housing.  

It looks to me like the classic 70% rule makes this a worthy buy as long as the rehab costs don't exceed $60k. 

I dont know the laws in NY, but here in  San Diego,CA, we have a act called the Mills, its tax advantage on older classic home that qualify, you cant change the inside all you want but not the outside, so in Point Loma this area here there is a few so i bought a home with a partner not long ago it was a old classic home, asking price was  $1,185,000 which we taught was high the house was ugly inside i mean ugly i wish i have pictures still and most people saw the historical designation and were turn off thinking they couldn't do anything but know i studied my Real estate california books so i dig into and took a risk and waited, for about 3 months the property was reduced to $1,050,000 or so, after multiple counter offers and lots of talking we got the property at $890,000. we put all this beautiful classic stuff into it about $350,000, so we were into it for $1,240,000 which people taught we were crazy but the house was perfect we were allowed to paint the exterior, its original 1901 color, and fix the yard and make a car port but not a garage, so after almost 7 months, we put it on the market and in about 35 days a buyer came and we got $1,800,000 which were very happy with. so yes there is possibilities 

I can even apply a permit from the county to remove the structure altogether.Obviously I like the building for its historic appeal and I am very mindful in terms of repurposing it.

Just for kicks, check out this "simplified" guide to low voltage installer licensing requirements in CT:http://www.casiact.org/assets/2016-simplified-guid...Here in WI, up to 24 volts I believe it is, NO license is required and we see some of the same messes and I'd agree with the other comments, as landlords we MUST keep an extremely tight leash on ANY sort of installs like these and I've seen the "cable guy" do much of the same and it doesn't matter if its some dump about ready to fall over or an incredible, truly classic home with a stone or brick exterior, they'll normally just drill right through the exterior (good for the masonry drill bit companies!)

Is anyone seeing an increase of repurposing commercial to residential properties in the greater Sacramento area?

Some things they were saying led me to believe there might be more upside and I think it was a classic case of under promise, over deliver, which is not a bad thing.

I have personally have not worked with any but Kentucky Life Property Management (SFR & duplex), Reliant Property Management, Classic Real Estate, and Cypress Property Group are some that come to mind.

Ultimately there may be too much space to fill, so we might see the space re-purposed to other uses.