They use the term "speculators".  

I see the market at an all time high and I never, ever ever speculate on property values going up nor do i count on this for my deals.

It turns things from real estate investment to real estate speculation. 

.- Appraisals are done based on the home's current configuration and use, not based on speculation about historic uses that may, or may not, have followed all the relevant ordinances.- Sometimes an appraiser will comment that the property is "legal non-conforming (grandfathered)" or something like that, and generally you are good to go.- Long gone are the days of cherry picked appraisers.

If you give more specifics, people can answer better, I am only speculating.

I realize this might be a lot of questions but any answer you get on this forum that does not have that info is speculative at best.Cheers, Tim

Furnished as a mid-term rental would be around $2400-2800/month based on comps, again with range based on finish quality.I am thinking it may be better to analyze as a flip rather than rental since long-term rents in the area are lagging valuation because it's a neighborhood that is just barely beginning to see any redevelopment (even though builders have listings on nearby vacant lots offering new build $1M+ homes based on their speculation of future development). 

There is no doubt that solid appreciation will outperform cash flow with the caveat that appreciation is speculative and cash flow not nearly as much. 

My speculation is that the ROI would be greater by looking for an extra room in a unit.

The inspector speculates that house has settled over the 60-70 years the house has been standing.