Assuming the neighborhood doesn't change substantially and still warrants a 15.6 GRM on its buildings, you should be able to sell the property for $2.5M ($13,4000/month x 12 months x 15.6 GRM).So if you bought at $1.5M, spend $900K on the renovation and ADU build, then sell for $2.5M, you haven't really earned that much for your efforts.So, yeah, these improvements don't seem worthwhile at the prices you've been quoted, but again, your quotes seem wildly high.

I would prefer, personally, to invest a substantially lessor amount to fix the property to give the option of either retaining it as a rental and/or selling it without the loss or a much lessor one. 

It takes longer than making a quick buck selling the property, but the long-term results can be substantially better. 

You and everyone else are obviously free to choose who they like, dont like, want to, dont want to do business with or be associated with.All I am saying is that what I like about them (everyone is entitled to agree/disagree) is that with the volume of members that the vendors have access to is substantial.

@Stephen Bass bonus depreciation can be a powerful tool if approached correctly, and has the potential to create substantial tax benefit, which can be used to offset the gains incurred from the sale of property.As you seek investments with bonus depreciation, keep in mind some property types will garner more benefit than others.

It is important for multifamily owners to keep in mind that renters cannot be charged more for running expenditures, and property tax is a substantial expenditure to think about.

Theoretically if they can justify the fee they were charging then the fee could still stand, but more likely they cannot and will have to reduce the fee substantially.

well i lived through it.. painful as it was.Gap lending is far to risky for almost anyone end of story.. totally agree.the only time it works is with some decent cross collateral and or you have a substantial relationship with the client and have done LOTS of deals with them for many years. 

Such a scenario doesn't just bring values down by 30% but also places substantial pressure on property holders, especially when debt refinancing looms on the horizon, compelling action at these reduced market values.Here is the double whammy that increases the cash in refinance needed, the capital markets (bank lending) terrain has tightened greatly.

Transactions with unrepresented buyers have a substantially higher change of falling apart. 2) What do the best buyers agents do that sets them apart?