They analyze components such as cash flow, principal paydown, appreciation (both home and renovation), initial equity, depreciation, and interest deductions for tax savings, giving you a clear picture of individual gains and ROI over 30 years.

Hey @Sidra Amir,I would ask your tenant what they mean by unnecessary attention. 

Maybe if you can prove that you are actively trying to gain compliance, that will get you the much needed time to gather $, time to pull the permit and ppl to perform the work bc they will have a bit of mercy on you bc you are trying to do the right thing. 

Pay more attention to people who have actually done what you want to do.

That said, check with a CPA if you can use expenses from the remodel to offset some of the gains.

Since you have lived in the property for two out of the previous five years you could take the first $500k of the gain tax free (as a married couple).

That means either you won't cash flow or your Return on Equity (ROE) will be terrible.Since this is your primary residence you'll be exempted from paying capital gains taxes when you sell.If you sell to your parents, it will be considered a non-arms length transaction and will get closer scrutiny.

.: So there was a thread that was started a number of days back that is actually gaining quite a bit of attraction.

The other thing is that if the house is really appreciating rapidly, if you lived there 2 years and sell within 5 you get to keep 250k of the capital gains, which probably makes better sense than keeping long term as a rental. 

A picture is worth a 1000 words and a project we helped someone on in the UP was able to gain support and approval by getting renderings done showing what the finished project would look like.