While the intrinsic value of the real property initially seems like a safety net, the reality of the capital stack reveals the risk.

Most of my tenants pay close to $20,000 a year in rent, it’s a small price for me to pay to ensure their safety. 

Whatever you do, be patient and don't chase! 

Owner needs to pick them up in his truck every day, pray that there are no parts to return needed and unavailable, watch for the health and safety of every grain of sand, serve food, motivate, problem solve and never cry.  

But think of it this way, if that person were to do the exact opposite of their promises/their word/or opposite of what's spelled out in your contract, what safety measures do you have to reclaim your hard-earned/hard-saved cash? 

Congratulations on being debt free and for being smart enough to be patient! 

Safety and quality of life can/will be influenced by your tenant.

@John Kubilis main reason you want a legal bedroom is fire safety.

Great post Golan,I have always been of the belief that appreciation is more speculative and unpredictable.Nobody has a crystal ball to predict the future.Cashflow is more "certain" and based of the numbers as they are today rather than forecasting what might happen in the future.You take the income vs the expenses, plus including a margin of safety for misc expenses and then you look at the bottom line.If the numbers make sense, the deal is worth pursuing further."

Not sure if it is a scam or if it would pose potential safety/privacy issue.