The practical problem is that the zoning code has a provision that should more than 50% of a structure's value be destroyed, it cannot be built back to 4 units, but only as 2 as the structures were built before the zoning code went in, and it was later zoned as duplex.

I don't want them to make stupid, short-sighted decisions and struggle to pay rent every month -- miserable tenants tend to destroy their environment.   

Still, beachfront or 'beachside' is what it is, and unless a hurricane destroys the town, it probably won't ever go down in value (barring anymore mortgage meltdowns)

@Nanette Domitrowich That would be a fabulous way to destroy the value of my "brownstone" type building!

What was supposed to be a 5 week project was not only not finished after 6 months, but the quality of work was so poor that we are now having to go back and re-do many, many things.We found plumbing in walls that had not been soldered.We found a bathtub that had not been installed with any support framing.We found electrical running to nowhere, and full circuits non functional.We found incorrect grout used in bathrooms that was already cracking.We found sewer PVC fittings in walls not glued.We found shower valves installed too far back in walls and then tiled over so the hardware could not actually reach the valves, requiring us to rip into walls to re-do plumbing.We found they absolutely destroyed the wood floors.We found brand new bathtubs had been scratched, chipped, and gouged because they were not protected and people had been standing in/on them and dropping tools in/on them.We found exterior walls without insulation.We found numerous doors hung crooked or even hinge bound so they didn't swing smoothly.We found ceiling electrical just boarded over and hidden.We found double tapped circuit breakers.We found vinyl flooring laid right over screws sticking out of the old floor, so the vinyl plank flooring had bumps in it clear as day.

My biggest concern is screening tenants and not winding up with people who are going to destroy the house.

Even if they did find someone, they were probably not screened well and were the only applicant so they destroy the place and stop paying rent. 

If you do have a moisture issue that is potentially causing mold, you want them out so you can address it before it becomes a massive problem and destroys your investment.

The island was completely destroyed as were all five of our condos.

I recently read an article on the bigger pockets blog by a well respected/accomplished investor, talking about capex numbers that just destroyed any potential deal I look at.