– I’m exploring whether I can remove the SRO designation and replace it with Artist Dwellings, but I’m unsure of the legal requirements or how this conversion works.If anyone has clarity on the definition of Artist Dwellings or proven strategies for making this type of conversion, I would greatly appreciate your input.Thanks in advance for any insights!

So my question is, are you generating more qualified leads with this free time you'll get back, or are you trying to replace this with a VA?

It is a liquidated amount covering only part of Landlord’s damages—for Landlord’s time, effort, and expense in finding and processing a replacement resident.

And, as Nathan noted, you are likely giving up huge appreciation potential, which will likely never be replaced by cash flow.But at the end of the day, if you are in a declining market in LA and are able to find great deals in higher cash flow areas, taking into account the likelihood of needing to outsource everything and additional travel costs to visit the properties a couple times per year, and you don't really care about appreciation, then it could work for you.  

If the plan is for them to live in the house until they are no longer able (either they pass away or move to a nursing home), then it may be that you and your husband are paying for all of the repairs and things like replacing the roof...or maybe they will treat it as their own home and simply give you the money each month to cover all of the expenses.I'd be concerned if he has siblings to make it clear that the house is yours (though with the in-laws paying for everything the siblings may see it differently) and what happens if you divorce?

Whenever you close on a property, one of the first things that should be done is to check for a leaky toilet and replace it.

We added value by re-doing the whole house, installed vinyl floorings, rebuilt 2 and a half bathrooms, re-painted the whole house, replaced all the hardware in the house, installed new lighting, ceiling fans, re-painted the kitchen, and completely remodeled the upstairs.

I can see how headaches and hassles can make selling a more appealing option, especially when the market conditions are right and your point about taxes and having a replacement property ready for a 1031 exchange is really valuable.

We replaced floors, repainted every inch of the interior, and fixed everything that needed attention.

But how can we draw a line between repairs and replacement?