I'm not concerned with the balance sheet (presumed equity) I'd care more about the income statement (cash flow and making money).

If he added square footage to the house, that's a lot better - presuming that the work was permitted.Finally, any good local agent should be able to adjust those comps - but all that will not mean much until you answer the first three questions.

Why was the bank approving the draws even though the presumed milestones were not achieved?

Class C neighborhood is what I would presume.4.

You'll have turnover costs and vacancy and presumably end up renting it for the same amount (since you said it's already been raised to the market rate).

In reality I only work with people in a presumed exclusive relationship (except for experienced flippers)

Are you about to start up UPT I presume?

If you are disciplined then go for the 30 year, if you are not then go for the 15, presuming of course that you actually pay off the mortgage.  

The landlord in an owner-occupied building with three or fewer units may increase the rent after the landlord has lived in the building for at least one continuous year.So presumably after I occupied the vacant unit for a year the rent control would be removed?

Although far from my area of expertise - once the property has been rehabbed, I presume the taxes will increase significantly from its current $2,600/year?