Historically, even though the markets dip down sometimes, real estate is generally moving upward in value over the long haul. 

This means thousands of dollars more in engineering, surveyor, and architectural cost plus months of extra work.Original 2-story garageHISTORIC CONSIDERATIONSTo complicate things further, the structure is located within a historic district.

To answer #1, a track record with historical results you can show, a pitch deck that has a business plan with it, the sponsor putting in substantial equity...

I live in a historically low income area so I always run into issues with people being able to pay rent.

Orange County housing inventory is at all time historical lows. 

I'm relatively new to investing and need some help with my unconventional situation.First off, I'll give some background about myself.I Live in British Columbia and have been a homeowner for about 8 years. my house was appraised at the beginning of last year for $550,000 and still owe $120,000.

While rates overall have been up from what we see there has been a need to lower rates in the past 2 months and based on historic data we anticipate the same for the winter season as well to attract the top residents to properties. 

If the property has historically operated as a 2-family and the rental license has not lapsed for more than 3 consecutive years L&I will continue to honor the 2-family use.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I personally wouldn't go above the historical rate of inflation (closer to 3%), and always underwrite my deals as 2%.