Oh wow - could you also convert the detached into another living space? 

Originally, I was looking for a "house-hacking" situation with either a small home + attached living space (basement apartment, etc), or renting out rooms in a home I own and occupy. 

I have no facts to back this up, just a rumour that I saw on BP and elsewhere.Until there are some sustained movements showing a vacancy decrease in downtown commercial office space I wouldn't risk it, but that is just my tolerance level. 

@Dave Ostrofski read your landlord tenant laws but decreasing rent proportionate to the unusable space could be supported by your local landlord tenant law, if you are saying it is a major loss of use. 

They refused to clean the carpets and went on and started replacing all carpets in approximately 700sq ft living space.

Houses that look very similar on paper (same neighborhood, style, square footage, year built, beds and baths) can have very different market values depending on things like interior light, flow, ceiling height, privacy, yard space, neighbors, curb appeal, master bedroom size, kitchen counter and cupboard space, parking options, driveway slope, proximity to noise or businesses, parks, schools, etc. - to name just a few things. 

I have a property with a detached garage that's partially converted that I want to convert to a living space.

Looking at buying this town for 680,000 gala  (or about $60,000)  it has 35 spaces to rent out.  

This property has a separate entrance to the downstairs unit and the space to add a kitchen.

I think you're right that the beach has more room for appreciation as they are pretty much out of space to build in STR zoned areas in PCB so what is there is what is there.