Discussing these points can help you make a sound decision.I agree wit @Noah Corwick that permitting and construction cost make this a tough option.  

I agree that 100 mbps is probably the perfect "good enough but not over the top".

Any law that tries to do otherwise conflicts with sb13 and ab2533 (unless the unpermitted units was created post dates of protection by those laws).i agree he should get it permitted especially if close to the price quoted, but issues due to unpermitted units that are protected be sb13 and/or ab2533 present minimal risk and if it does happen get HCD to assist in any issues. 

I totally agree.

Did you use a local bank that agreed to a Seller Carry in second position?

In addition, committing ~ $200K requires some level of sophistication on the part of the investor and you are more likely to find someone to agree to your terms in smaller transaction sizes, but even that will be difficult. 

Agreed with above- kitchen & baths only.

Agreed, I think these articles are primarily made as clickbait and designed to give homebuyers false hope of an impending housing crash.

I 100% agree with @Nathan Gesner. 

I agree with @John Underwood 100%.