Approximate purchase price of $650-$850k with a construction budget of $1.0-$1.5m depending on total unit count. 

If the comps have the same sqft and bedroom count, but this property has part of it carved off into a JADU, then for sure it will sell for less than the comps. 

I know I should not have counted on appreciation and I think I been loosing money on it for a very very long time, but I had other things to attend to. 

In other words, if I can acquire a prime freeway access property (190k daily traffic count) and build for less than acquiring a facility ($25 to $28sqft), with competition all over my 3 to 5 mile radius, although there are multiple new housing developments and apartments going up ->-> would you even consider it?

Expensive yes, but high pigment count and excellent coverage.Sounds like you've checked all the moisture entry points.

The real numbers are more complicated because while we count mortgage payments, the reality is some of that is for interest and the rest is against the principal, so really some is going to you in the long run, but is currently tied up as an expense. 

Generally, yes all capital events count towards IRR calcs. 

My expectation is that we will likely only meet the material participation test in 2022 assuming that our renovation work in Q1/Q2 counts.

Greg ty so when I will finish my renovation including the new roof I will put there so the appraiser will count the new roof with his apprize price correct?!!

I need help deciding if I should keep my primary residence and rent it out or sell it and then move into a new one, I have already done a cash out refi of 60k if we rent it we would get 150-250/ month profit not counting cap ex and if we sold we could get 5k-20k property is worth 250-280 ARV , the property has brand new roof hvac and hardwood floors with in the last year or two we will also be using va loan to buy. ps my wife wants to sell and I want to rent it out