You want to identify the areas that are in the highest demand by watching inventory levels and sales.

And then related to the numbers but slightly offset... what level of increased risk would you be looking at on that cheaper property?

I made the assumption that was not an issue since the other bedrooms on the same level have taller ceilings.

Loans with high LLPA's (Loan Level Price Adjustment) are a lot higher now because investors aren't paying what they were for the higher coupon rates like they were a month ago. 

Hard to say yet if more "deals" will surface as people face financial difficulty and job losses, so I'm would keep an eye on inventory levels.

At this point everyone is apprised of the federal level relief but there's plenty of money from generous donors and program in and around the Commonwealth.

I would think the fact that it has separate electric meters would add some level of legitimacy to the fact that it was converted before zoning, but I don't really have any experience on whether Indy just considers these properties as "grandfathered" or if they try to enact some level of "enforcement."

(It doesn’t matter whether the loss is deductible on your tax return.)You, your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence:Died;Became divorced or legally separated;Gave birth to two or more children from the same pregnancy;Became eligible for unemployment compensation;Became unable, because of a change in employment status, to pay basic living expenses for the household (including expenses for food, clothing, housing, medication, transportation, taxes, court-ordered payments, and expenses reasonably necessary for making an income).An event is determined to be an unforeseeable event in IRS published guidance.Other Facts and CircumstancesEven if your situation doesn’t match any of the standard requirements described above, you still may qualify for an exception.

When pulling these rent comps, be very cognizant of finish level. 

The more regularly this happens, the more it is reflected on a macro level throughout the market.