I think it is a dilemma - so, he is a caught sex offender and therfore known - we know there are many many more who havent been caught so you are ahead of the game - I believe in giving second chances but - it costs, and sometimes those costs are not worth it.do the numbers and this deal may not be worth it - reputation risk is real and very hard to quantify. also go thru the scenarios of the worst happening and figure out what you would need to do in each case - what it would cost personally and financially/find out what kind of insurance would cost to cover any eventuality - wherever he goes, if you believe he cannot be reformed there is risk, if you believe something will happen then you are really only concerned about where it will happen - on your property - so mainly you are concerned about getting rid of that risk for you. that is why you need to do your cost analysis, it is nothing about morals or anything else fuzzy - it is your financial risk.

Check this out... http://www.seattle.gov/dpd/permits/permittypes/constructionestablishinguse/default.htmIf there are substantial modifications to the existing building that need to be completed than you may need a whole building permit...http://www.seattle.gov/dpd/permits/permittypes/constructionaddalt/default.htmIt is hard to quantify the risks. 

I'm not sure you can quantify or qualify the parameters.

Not sure losses here are quantified.  

One thing you can't quantify is the energy you possess!!

The market is highly inefficient, people act irrationally much of the time, many variables are hard to quantify and don't get me started on rehabbing or tenants.

Impact to Budget -  $0 I am going to say zero dollars economically but probably lost out on several business building opportunities which certainly has a cost though I will not attempt to quantify that here.3.

If you can quantify and get a descent probability and value, using expected value over time will make you more profitable.

I lost count of how many times I've seen that happen.You say that you'll only buy if the price is well under market value...but you are unlikely to be the only one bidding (and if you are, be afraid) and the other bidders, likely to be pros, won't sit idly by while a property goes to a new bidder at a huge discount.Finally, yes, taxes are an issue, but in your state you also have to watch out for super-senior unpaid HOA dues, and those are harder to accurately quantify than taxes.

How do I quantify the impact the slowdown in the oil economy has on the value of the cash flow (other than increasing my calculation for vacancies which I am sure will increase if oil does not rebound soon)?