I remember, several years ago, reading in the code book that one reason an exception may be granted is if zoning restrictions result in an excessive hardship on one’s ability to use the building. 

If the note performs and the note buyer’s yield requirements and risk appetite are the same, they will still offer the same pricing for more payments, usually no more than 5-7 years into the future.

If it is middle of the road and you have an appetite to rent in the low income market, it could be a good fit. 

There are some slow-BRRRR opportunities in pockets of the city (and by slow I mean it is more speculation than I'm typically keen on, but there are some options higher on the risk curve).The biggest issue in our market, similar to most others in the US right now, is that sale values have surged far in excess of rent values. 

City of San Diego has a tenant protection act that is more excessive than the state wide AB1482.  

Yes costs rise but windows open in winter and excessive water use are all things that utilities included means as a LL you should have a say about. if that doesn't work the tenants can choose a non-utilities included unit.

Most of it was excessive and a quarter of it completely pointless.

Because we paid more at the foreclosure auction than was owed on the mortgage, the tenant was able to collect those excess funds from the county and afford to pay rent - which was considerably more than what his previous mortgage was.Just to set the scene - the tenant had 5 cats, and 10 litter boxes that had not been changed in years.  

If you can deploy that excess cash and yield a return higher than the difference in cash flow, then I wouldn't step up to a 20% down payment. 

I went from unmetered to metered and save in excess of fifty percent of the unmetered bill.Good news is that installation is free.Check with water department as to how you get on the installation list for when they do start installing again.