The numbers need to work to do the deal for sure. 

I'm trying to Figure out how to make this potential deal work.Seller wants to sell but not right away because they still use the house for some income.  The Mortgage is paid off. How can I strike a deal where they can...

It never hurts to talk. 

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!

Purchase price: $715,000 Cash invested: $297,000 Current Listed Price: $830,000Original Listed Price: $950,000 (4/13/2024)It has been reduced $120,000 in the las 6 months and hasn’t sold.

Do you want this thing to be the tipping point for them to leave and you have turnover costs and a vacant unit? 

You have to jump through hoops to get the approved work even if they will approve it.

It is not clear to my what you waht from your post.You raised 4M in 2 months. 

Comps do not lie, if she pulled similar ones then that's what it is but if the agent did not take into account the bedroom and lot size that would change the value.

The fear of unknown and the bad potentials, but then sh_t happens and ya remember that we got a choice to lay down and be done in by it or roll-up the sleeves and get to work and be a solution maker.