So I think pivoting can be the right move.Florida is a very pricey market, I looked at a few markets around T.B.  80k will not stretch a long way in those markets and I near that the permitting process can be a nightmare. 

Oh, well then you shouldn't even need a permit.....!

Permitting took literally 2 years.

If people are getting free electricity and water, they tend to be a little less frugal :) .Then check on insurance costs for a MFH and add that to your projections.Finally, talk to your contractors and see what requires permits, what their experience has been in getting them to pass inspections, the timeline and the cost.Factor all of these into the decision to move forward or leave as is - maybe advertise it as a 4/1 with a home office with outside access and get more rent that way.One last point - I hope that the addition you mentioned was done with permits and is reflected on the tax rolls because if not, you may open a can of worms you wish you had not.

Permits are at the final stage and I need to decide on a contractor.

This stability can provide predictable energy costs for your properties.Environmental Benefits: Utilizing solar energy reduces your properties' carbon footprint, contributing to sustainability goals and potentially enhancing the appeal of your buildings to environmentally-conscious tenants.Regulatory and Permitting Considerations: Make sure you understand the local regulations and permitting requirements for installing solar panels on multi-family properties in New Jersey.

I was told the red tag was placed due to no permits but I myself have seen the permit for this place on the interior wooden framing prior to the Sheetrock going up for the walls inside.

I think where it will hurt you the most is if you build a garage or ADU without any permits and plan to refinance out of the FHA loan.

It worked fine for basics, and I even did some barely passable permit drawings on it, but it is by no means pro-quality.  

This includes construction, materials, labor, permits, and any other associated costs.Negotiate TI Allowance:Landlord and tenant negotiate the TI allowance amount based on the estimated total cost of improvements.