Regarding the vacant homes - there are policies that range from 2-6 months designed for light renovations (typical improvements like roof replacement, new carpet, general updates).

Private accommodations of Airbnbs will feel much safer than hotels designed for the masses that increase the chance of bumping into an invected person at the turn of every corner or opening of the elevator door.

However, the language in the Baltimore City Zoning Code says the following:In order to grant a variance, the case must be made that "because of particular physical surroundings, shape, or topographical conditions [...] an unnecessary hardship or practical difficulty, as opposed to a mere inconvenience, would result".It goes on to say that the purpose of the variance is not based exclusively on a desire to increase the value or income potential of the property.The basement unit I have designed is very important to the financial success of the project but I'm having trouble explaining why it will also result in an unnecessary hardship or practical difficulty other than economic reasons.Any suggestions?

If your space is something special, if you've got better features or have put in some serious interior design work, then that AirDNA data is going to be low.Good luck with whatever direction you go. 

For example, right now in the name of regulations designed to protect investors (like 506b), sponsors are not allowed to share their performance information publicly.

@Matthew Forrest currently in the design/architecture phase!

If the designers didn’t go with a conservative pitch, then there’s bound to be small areas where you get ponding.

My concern is I have a craftsman style house, what if the ADU design is not in harmony with the main propertyIs going custom will drive up the cost significantly?

I have a craftsman style home and want to make sure the ADU design is in harmony with the main propertyI am also curious to learn what kind of tenants it will attract and is the rental price in line with how much someone will pay renting a 1 or 2 bdr apartment?

Risk is forward-looking and dependent on a lot of variables you can't capture with just current income.However, I'd say higher CapRates may reflect some perceived risk, but that's not what they're designed for.Risk is more reflected in CapRate compression since those downtown units are going to need to sell for less unless there is some big change in rent-ups.