This circles back to having a lease, increasing rent fairly, and saving every dime of cash-flow.

I also keep a fair amount if cash (10%).

I am fairly new to real estate, but have been able to get a few properties which will help us own a block in downtown Columbus, OH.

Part of the investment thesis was getting it for a bargain, then building an ADU complex on it as affordably as possible, getting it to cash flow, and realizing value on both the rental income but also property appreciation given the work going into it.If the property will really only be worth ~$1.70M once we are finished, I will likely just stop the project now and exit the house as soon as possible.If you do not get dollar for dollar for projects such as this, how would house flipping ever work?

I have people ready to give the funds, I just don’t know what’s the best set up that makes it fair and attractive for both parties.

Your assessment is fair for sure.   

He's changing the terms of the agreement, and you can choose to accept it or reject it.I don't think it's fair to pass this cost onto the tenant just because you are unwilling to stand up to the contractor.

Quote from @Jerrell Randolph: Hi BP community I am a fairly new investor.

This would apply to your unit.Your biggest concern with setting the rent should be the near future. 1) Your insurance is guaranteed to go up, probably dramatically.  2) You may get an insurance assessment bill to cover the CA Fair Plan losses.

@Katie Lyon Because our weather is more temperate over the winter months, we have much more consistency in demand across all times of the year, so typically the market stays fairly consistent through all seasons.