Or, they let the property go, a new buyer steps in, goes through the process and gets a different appraiser who hopefully has more experience and can give a more accurate assessment of value.  

@Kumar Gaurav that is my guess, but I am hoping that a more basic understanding that the lower part of the building is an actual unit will be enough for the City.

If you are risk averse, a more conservative avenue might be in order.

It's probably best to get a more expensive Non-QM (non-Qualified Mortgage) loan that allows you the flexibility to a LOT more including this scenario.

(and that also means if rates have gone up past the APR cap,  you are forced into a more expensive loan)3)  Somewhat higher rates vs. 

(The tenants in the house might not appreciate an RV being started up or backed into place at 3 AM, or somebody loading stuff into their shed at 11 PM...)Do you need security cameras or lighting on the sheds/RVs? 

But managing to get the right tenants into C/D units is, I believe, a more involved process than what A/B landlords typically go through.Point 2: Managing 40 homes is possible in low-income rentals. 

They all suggest to go in on a couple of deals with a more experienced investor.

So, why would an insurance salesman not sell the less-expensive policies and risk losing every sale by selling pushing for a more-expensive policy.

That should give you a more accurate idea