My question to y’all is, is arbitrage legal in Denver or surrounding cities?  

As many of the surrounding regions grapple with rising water, heat, population and traffic problems and tensions, those invested in the Oregon Coast will have a sanctuary from climate and its societal effects. 

Nice to see some competent talk surrounding the subject. 

The plan is to cut 4x8 boards by half and install them and use basic wood molding throughout the basement which is about 1000sq feet$4000 for drywall replacement, plaster of about 5-6 inches wide and moulding$2000 for paint if we want thatInsulation will be $800 extra if we want to do it - they plan to use fiberglass insulation and push them up all the way into the ceilingDoes this look reasonable, even for NYC?

With the regulatory environment surrounding short-term rentals always in flux, I'd never buy a place using Airbnb numbers.

Same is happening in chicago and surrounding suburbs.

In Milwaukee, I'd need 2 exits from the attic and 50% of the space has to have at least a 7 foot height on ceilings.Two things you want to check: both requirements are correct, but on top of that the city is getting reluctant permitting 3rd units: 50% more occupants mean 50% more water and sewer and 50% more traffic and parking.The other issue is that the cost of finishing a thrid floor with proper insulation/ventilation will run about $50-60/sf and only makes sense if you can get strong rents. 

And the price point is a bit lower than surrounding areas.

I do land development in PHX and surrounding areas, so we tend to purchase properties that have some acreage that we can entitle and develop - that's my expertise for the last 2+ decades. 

Surround yourself with other investors, preferably those that are ahead of you.