You did not mention how far they are from you which is also a factor.

I'll also mention that one such outfit informed me that insurers use an estimation software which provides standard rates for all phases of construction work.

The article mentioned several houses that got purchased at prices $40K or $50K above asking. 

I’ve mentioned it to people at work and some friends who are moving to the city, but my place is either too far for them, or they prefer their own space.

You mentioned that you've been paying water / sewer for all 4 units. 

As to the buddy I mentioned in Washington state it was the same scenario; he converted tax-free up to their standard deduction but above that he kept within the lowest tax bracket and paid the smallest amount of tax possible.Thank you @Basit Siddiqi for calling me out on this and giving me a chance to address my mistake; it's important people have the correct information.  

@V.G Jason @River Sava @Lisa Jones @Ben Pileggi @Gregory Schwartz @Jay HinrichsAnother silver lining I forgot to mention - Good investing partners.Having solid partners who can share the load (financially or logistically) during disasters can make a massive difference.

The issue I have seen with these types of properties is they could have two valuations - the value of the real estate which the structures will have little value and you have the land the other is as an operating business just like a bed and breakfast would have - real estate has value but it operates a business now you mention 12k / month but if someone also has to manage the property what is that worth and what would someone pay to manage a property like this?

As others have mentioned, the rate will be higher compared to a loan with a 5 year prepayment penalty. 

You mentioned that you have an architect you recommend in this area?