This way the lender is covered and only lending on the value that is legally zoned and compliant (in case the city took action against the non-conforming unit).

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

Before buying or renting in an unfamiliar neighborhood, you should check the following two sites: SpotCrime, AreaVibes,These sites provide valuable information, including Livability Scores, which cover aspects such as crime rates, employment, health, housing, schools, shopping, and more.well, anything can happen anywhere.

I've not covered everything but just given you a start. 

Our insurance has been canceled on this home and we are working on getting insurance to cover when this current one ends.

I ended up getting a 401k loan to cover the purchase of a lot.  

Living in one side and renting out the other will help cover your mortgage, and after a year, you can move out and keep both units as rentals.

You might also consider creative strategies, such as renting parts of the property to cover expenses while you navigate the process.Best of luck, and I’d love to hear how things progress.

You’re giving very limited information which forces people responding to cover unnecessary points.