Hi Aj, If you are brokering this yourself, I would ask for the lender's rate sheet and look at the loan level pricing adjustments.

So for the Comps you make to arrive at your ARV something that jumped out at me was the adjustments.

I don't see any capital gains on that, just an adjusted tax basis.

The carrier rating for Obie policies range from A+ to A-.You are probably aware that many carriers are leaving the State of California due, in part, to the significant regulatory challenges they have with making adjustments to their products that the state always has to review and approve.

If not, then the path of least resistance is to simply adjust your vision so it fits better into the lot, as-is. :) A zoning change can take up to 6 months, approval isn't guaranteed (despite Aldermanic support), and potentially cost a lot of money (architectural site / floor plans & dimensioned elevations, zoning attorney, holding costs, etc.) 

Do they suggest how to enter the transaction accurately or enter an adjusting Journal Entry.

You can adjust them and shorter PPP's tend to have higher rates than long PPP's so keep these in line with you strategy with the property whether you want to hold long-term or refinance in a few years.If you're still looking for financing I'd be happy to help.

It may make sense to save a bit more and invest from a position of power.Keep in mind most helocs are adjustable.

It took a posting from me fir Grocapitus to make adjustments??

Best regards,Yaroslav @Yaroslav Shtogun what about a slight adjustment to the property line and executing a no build easement so that you're achieving the purpose of the setbacks?