Don't bang on pipes in the quest of fixing anything Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

You’re likely going to be on the hook for S/E income on it once be depreciation and losses have been exhausted, so, just be cognizant of the overall picture!

For the sake of this argument I will assume that the insulation they are referring to as being asbestos was probably pipe wrap for a steam radiation heat system.

Anything where it costs over $500 to repair/replace, they contact me for approval (unless it is an emergency-eg burst pipe). 

Have they exhausted all other avenues?

A 1% rent-to-value ratio seems like a pipe dream as properties are operating at half a percent or worse, mirroring markets like Hawaii and California.

And if the heat hasn't been on at all, due to freezing in the winters, there could also easily be busted pipes and flooding on the main floor as well.

We practice "safe real estate", so this is all possible but not necessarily what will occur.This is not exhaustive and does not constitute any fiduciary responsibility, it is merely one man's opinion on a public forum.

The existing system is pretty old cast iron except some ABS pipe towards the front of the property before going into the street.

Some things that might be a concern:1) Obviously have to make sure things are all permitted first2) I don't want the room to "feel" like an addition, so flooring has to be same level/standardized with the rest of the house3) Unlike the rest of the house that has an identically-shaped 2200sqft basement underneath, this added space will not have a basement directly underneath it -- I'm not sure if this poses major cons for some reason that I'm not aware of4) Especially given the lack of basement underneath, I have to make sure that the HVAC can still somehow be piped into this room#2 and #3 are probably my biggest concerns (#1 and #4 I can find out relatively easily)Any tips/thoughts or other experience would be greatly appreciated.