If they are deep enough you can weather the storm, pay eviction costs, turnover costs, and loading fees for tenants. 

I'd say it depends on where you would put that money and if it could outperform forecasted appreciation and cash flow.

The first issue I had was the noise this creates in the bedroom then to see a thin wooden door only able to open by a deadbolt lock. there was no weather stripping and no vent in the door only about a 2 inch gap at the floor.

This will allow you to easily forecast your future build costs.It's probably worth doing an entirely separate post but how you spend your money completing a spec can have significant financial impact on your end result.

You'll make money from a cash flow basis and can weather any kind of downturn because of the great financing.So who's buying and who's selling?

You are counting on that money to weather the storm yet what if one day you find out its all gone?

Do not waste your time fighting Forecasters, The Unhappy, Journalists and Economists.

Orange County has an unemployment rate of 5%, and has natural beauty, recreational opportunities, universities, research facilities, high tech (Google) companies, cultural offerings, and PERFECT year round weather.

Market rent/vacancy trends will certainly be affected by national macro-economic cycles, but will generally be more tied to local conditions.These include the four big variables:- Population Trends- Employment Trends- Building Trends- Socio-Economic ConditionsAs well as countless other smaller variables, such as local customs, landlord-tenant law, severe weather trends, etc.

Quick thought - if you would like to replace and own in an area pledge by weather events, then go with the replacement value.