Bonus depreciation could be a viable strategy to offset your $300K capital gains, but it typically applies to specific property components identified through a cost segregation study rather than the entire residential property itself.

You need a new ac installer, no residential unit should cost $10,000.

Any use that leases living space for less than 30 days cannot be considered a residential dwelling.

@Jay ShahTo enhance your real estate investing confidence, consider educating yourself with courses and books on deal analysis, property management, and house hacking.

My view is you have incorrect risk assessment especially if this is in a single family zoned area.Here are some of my thoughts- 2 ADUs disqualifies from Fannie/freddie conventional residential financing even if both are legal. - appraisal could come back subject to corrections. - unless you get some whacko judge, there should not be any issue collecting rent on unpermittted unit, having a move-out cost (no fault eviction) in excess of the standard rent control or eviction process in excess of standard rent control hurdles.    

I've considered selling to investors, but I'm concerned they might want a substantial price cut, which is why I'm trying to sell it to residential buyers first.

This can enhance your application and improve your chances of securing a loan.

I owned multis in residential zones where people have home based businesses, successful, then hired employees.

With occupancy rates consistently above 95%, Old River Place is well-positioned to meet the growing demand for rental housing.Bascom plans to upgrade unit interiors and enhance the property’s exterior and amenities, offering affordable yet desirable housing.

Case Study: Cost Segregation Study on a 6-Unit Apartment Building Overview: A 6-unit apartment building placed in service in July 2021 underwent a cost segregation study, significantly enhancing the property owner’s tax benefits.