Have you spoken with a local appraiser to see what they add for a nonconforming BR/office/finished storage space? 

Please be gentle; I'm new at this and it's pretty complex :)Structure / Legal Details- we'd establish market value through a combination of comps from local real estate agent and an appraisal- attorney would establish all required "arms length" aspects including a mortgage at a minimum standard federal rate- LLC would pay us back based on a standard promissory note over 30 yrs Pros of selling to the LLC (I think)- A sale now would be the only time we'd be able to take advantage of the cap gains exclusion on this house bc we won't qualify for the "live there 3 of 5 years" rule due to the timing of our lease and our last time of residence. 

Also, what about appraisals?

Quote from @V.G Jason: Quote from @Chris Seveney: @V.G JasonI saw today that 30% of jobs now in this country are federal government or government contractorsWe cannot live off trillions of dollar deficits every year - employment is actually negative this year without the government.People lose jobs = cannot pay homes = homes get sold at discount = reset appraisals / lending… You're not wrong, just the sold at discount part I think the floor is going to be higher than people think.

Let’s say you own a land lot worth in the market only $20k, but because land prices are all over the board, you have a legit appraisal at $50k.  

Hi allDoes anyone has some guideline for how ADU (attached or detached) has its impact to home valuation? Are they discount compare to in home remodeling or tear down new built?I talked to a GC and ADU in general are ...

Most DSCR lenders are not reducing the gross monthly rental income for vacancy or expenses, they are just taking the gross figure determined by the appraiser via a 1007 or 1025.

If it is, your property may not appraise or sell, as it would simply become another active listing in your neighborhood.

@Martin YatesHere is the direct wording from DSCR guidelines about the situation, specifically regarding seasoning:"Properties obtained through inheritance or divorce are eligible immediately without ownership seasoning to use the appraised value for a cash out refinance." 

I'd push back on the appraisal fee.