I converted my STR back in December to avoid the newly increased Hotel Occupancy Tax (9% monthly) and to cut out my STR PM (10%/monthly).

Seems to me whatever % you would give up would be offset by simply renting out the upstairs unit.    

Talk to your insurance company - depending on your deductible and potential increase in future insurance you may or may not want to put in your own claim.I would also probably consider cutting my losses and getting rid of the tenant asap.

In your case, I would simply point out that they forgot to give a value for that space.

I’ve heard from some investors that are perfectly okay with simply breaking even on rental properties in the current market, but I’ve never had the risk tolerance for that.

I've learned over the years that real estate investment is simply a math problem.

Are you thinking government spending is going to actually get cut and inflation was just a flash in the pan? 

Invest the rest.Now you've got income, a primary residence situation that's crazy advantageous, a piece of rental real estate you can cut your teeth on, minimal or no personal debt, and some active working equity investments. 

Two things I have seen, one form of Gator lending is indeed loaning money to wholesalers for EMD for a cut of the action.. either interest rate or profit whatever they can all negotiate.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.