Key is call either the treasurers office or assessors office or even a realtor in the area and have them walk you through the calc.  

@Albert Gallucci as many have pointed out, in the commercial space of 100+ apartment buildings and offices, property classes have some pretty decent industry standards.We started applying these to 1-4 unit properties around 10 years ago, which you can verify on our blogs, because we saw too many newbie investors not properly taking into account things like, neighborhood status, tenant pool, property condition, etc.Unfortunately, there's no industry standard for this, but you can use some basic logic to think your way through your own Classifications.

Premiums in Iowa, Minnesota, Montana, Utah, and Washington jumped by more than 20 percent.The insurance situation is especially serious in California and Florida.In 2023, around 7 percent of realtors saw deals fall through due to insurance issues, with the share jumping to 13 percent last year as of October, according the California Association of Realtors.

I was thinking that the very thin hard carpet could serve as a sound insulation layer, and just installing click together LVP right over the thin carpet and the thin hard stick on tiles. 

I would push for very low or no money down but having a Realtor that needs to have their fee paid it may still not work.Look up the owner if possible through truepeoplesearch.com and call them up directly.

Were there any "intangible" value created through this build that wouldn't be reflected in the numbers? 

Happy to go through some details on that if that'd be helpful.

An audit could be triggered by a number of factors that don't line up when run through the IRS's system, and create an exception.

Sometimes occupants still live there and eviction is not easy, and I have even heard a story once that the yakuza are involved in the construction and real estate business and exorted money from buyers through occupants in these properties. 

REI has the finest presentation in the industry in that regard I know when Chris walked me through a few years back I was VERY impressed and I have been around that industry since 2002..