Your asking a nationwide or bigger audience about a somewhat local issue. 

., if the first floor used to be residential it might be easier to go “back”).Parking also frequently comes into play as the assumptions/requirements for store/office parking are usually a bit easier than for residential (depending on the nature of the business).You might be safer to assume you can put one big unit there rather than two smaller units, for purposes of your analysis.For cost, it really depends on what’s there (how much has to be removed before you can start building up).

Does this result in frequent insurance claims?

Banks or credit unions are often great options for stabilized properties because they offer attractive interest rates and fees, particularly for long-term holds.In addition, you can speak with realtors who specialize in the sale of investment properties, and they might have some good recommendations for financing.If you are attempting the "BRRRR" strategy, then you can still speak with some banks, but hard money/private lenders are also a frequently used option on the front-end (purchase +rehab).You can use the 'Network' tab on the BiggerPockets website to get an idea of some hard money lenders in your area, and much like getting references for traditional lenders, you can also speak with other real estate investors and/or realtors to see whom they might recommend.Hope this helps,Michael

These are important questions because it will tell you how frequently you will be doing repairs and how soon after buying you will have a major capital expense.

Do you have a good relationship with any contractor or subcontractor or perhaps a vendor you use frequently on flips/rehabs?

We see properties in lower end areas get neglected and turn over between owners frequently because they end up costing a lot more than was projected. 

The advantage is, it is close to big institutions such as  an hospital,  a university  but at the same time  drugs dealing are frequent. 

Otherwise I can't find a logical reason to explain how appliances can break down so frequently for a 7-year-old house. 

No idea on price but it’s frequently done in the area.