Seattle has very complex traffic poblems, so people try to find the least troublesome route to work.

I guess he would say that starting with a small apartment complex would be better?

Last year we purchased a mixed use business complex with light industrial/office warehouse "flex" spaces in the front of the parcel with road frontage and then boat & rv storage on the rest of the property. 

In time we will tear these homes down and build an apartment complex.

But I can see where an appraiser would compare ranches and bungalows equivalently.I think the situation can be more complex than just a declining market.

We actually used this to get into our first apartment complex.

I'm almost have enough money to put down on a down payment on a multi unit complex...

We purchased a newly renovated condo conversion about 5 years ago and it cash flows nicely enough that I've considered picking up another unit in the same complex.

I have been looking at this market for a couple of years now for complexes of 200 units or greater, and still can't lock one in to meet our required returns.  

Tenant's right to compensation, repair or renovation54. (1) A landlord shall compensate a tenant who receives notice of termination of a tenancy under section 50 for the purpose of repairs or renovations in an amount equal to three months rent or shall offer the tenant another rental unit acceptable to the tenant if, (a) the tenant does not give the landlord notice under subsection 53 (2) with respect to the rental unit;(b) the residential complex in which the rental unit is located contains at least five residential units; and(c) the repair or renovation was not ordered to be carried out under the authority of this or any other Act.2006, c. 17, s. 54 (1).Same(2) A landlord shall compensate a tenant who receives notice of termination of a tenancy under section 50 for the purpose of repairs or renovations in an amount equal to the rent for the lesser of three months and the period the unit is under repair or renovation if, (a) the tenant gives the landlord notice under subsection 53 (2) with respect to the rental unit;(b) the residential complex in which the rental unit is located contains at least five residential units; and(c) the repair or renovation was not ordered to be carried out under the authority of this or any other Act.2006, c. 17, s. 54 (2).If a tenant exercises the right of first refusal, it looks like you will be limited in how much of an increase in rent you can ask.Section 54 reads that you need to pay the tenant up to 3-months rent as compensation or offer them an alternate place to reside during the renovations.In NB we have neither of those requirements, we need just serve 3-months notice of termination to have the unit vacant and then commence renovations within 60-days.