The first home I bought was actually a retail store in Santa Monica back in the late 70's. There were a break room and an office in a loft with a storage "cage" out back and a very large storage room behind the retail footage. I converted the break room and office into a one bedroom apartment. In the cage, I installed a gate and it became my carport. The large storage room behind the retail store I leased out to a guy who ran a fitness studio out of it. There were one-way windows in the apartment overlooking the retail floor.
My girlfriend at the time ran the retail store, and her brother ran the fitness gym. She and I lived in the loft. Because the plumbing and electrical were already in place it was just a matter of re-modeling the loft space. Although I was the primary buyer of the property, my girlfriend and her brother were also on the loan. We were there almost 8 years before we were made an offer we couldn't refuse. She and her brother moved to Palm Springs where they bought adjoining condos in a resort and I moved to Laguna Nigel.
I loved those years and it was fun. I was working downtown for Standard and Poors as an analyst back then so I was making good money. When I moved to OC was when I started my own business. So that 8-year investment set all 3 of us up for the rest of our lives. That was way before mixed-use buildings were in vogue.
IMO when you look at a non-traditional building, you should do so not as a permanent home but as an investment (speculative). When I bought the building it was in what most people would call a "bad area" with lots of homeless and addicted street people. But I knew that there were plans to build the Santa Monica Mall less than a mile away so real estate would skyrocket.
When I buy a traditional home I look at neighborhoods in transition. When I moved to San Diego my first home was purchased at less than $200K but I knew it was a huge bargain. It was on a hill behind the La Costa, Carlsbad resort and my neighbors were rabbits, coyotes, and a mountain lion. But because it was behind a major resort and I knew Four Seasons Aviara was planned I saw it not only as a home but a long-term investment.
Again here in Tucson, I looked for a transition neighborhood. I found one not far from the university. When I closed the agent laughed and said because of all the Californians moving in I already had $10K equity. My payments are less than the rent at a decent apartment.
Had Covid not happened I'd probably still be in Mexico in the Popotla/Puerto Nuevo area, buying a 1,700 sq ft. 3 bedroom oceanfront high-rise condo. Some go for less than $100K. LOL Strange how life goes. For those looking for a change of scenery, it's not a bad option. That particular area is saturated with ex-pat Americans, Aussies, Brits, and Germans. In two years there I never had a problem of any sort. With a Sentri card from the time I left my apartment until I crossed the border was usually 70 minutes or less and Popotla is 35 miles south of San Ysidro. Believe me when I say it's not what the media portrays. Nogales, yeah but outside of metro TJ it's not bad at all and very beautiful if you like coastal living.