A basement may be used for habitable rooms or a dwelling unit, regardless of the depth of the floor below grade, if the floors and walls are impervious to leakage of underground and surface water and are protected from dampness, and if the required minimum window area is located entirely above the finished elevation of the grade adjoining the basement wall in which the windows are located.

It's all about location.

Are you located in the Kansas City area?

I have been interested in buy and hold properties for some time now, but have been reluctant due to the feeling of not being in a stable location. 

Did you ever locate one?

This is similar(ish) to trying to predict gentrification trends with new Starbucks locations.

As I said numbers do not tell the whole story we need more info on the property and location to make an informed decision. 

They've set guidelines for their comfort levels on things like:  Location, Property type - SFH, Multi-family, Apartment complex, commercial, other - etc. 

The property is located in CA in a multi-unit zoning.

My monthly payment which includes T&I is $579.33Balance is currently $48,368The house is assessed at $91,700 for tax purposesHouse sits on 2 acresHouse is approximately 1,500 square feet, 3 bedrooms, 1 bathThis house is located in the countryThe house is old (50+ yrs) and the septic is a conventional system.