Glad you are setting aside money, but if the HVAC is 20 years old, or the septic system has never been pumped, or the roof is 25 years old, etc; you will get hit with a cost before your build up enough set aside.How stable is the other tenant? 

HighLevel - plenty of build outs for LOs or brokers.

To all those stress I had to go through during this process the only consoling factor is the judgment amount I got through the Justice of the Peace Court.

I'd do what you can to keep yourself uninvolved with it....but still help your Grandma of course..A trip to the City (Planning/Zoning/Building Depts) will give you some valuable info.

I've seen estimates of $200 to $400 per square foot for SoCal with $700 sq ft for something higher end and building up a hill and but possibly higher for San Francisco Bay Area (lhigher labor costs, etc.).  

One of the major driving factors for increased premiums is the carrier's requirement for higher replacement cost limits on file for buildings. 

The latter would create mortgage rates issues, the former will eliminate a lot of fake demand and some material real demand in the housing market that is bid side.Mortgage rates higher + build costs higher(less labor + tariffs)= Kill demand.

An example might be a commercial tenant with 50% of the space in a building sends an after-letter notice that it now plans to vacate at the end of its lease term in 6 months.

However, some investors are fine with this strategy if they prefer to minimize their upfront investment and plan to refinance in a few years, especially with potential interest rate cuts from the Fed this year.At the end of the day, it’s all about investing in a growing market, selecting a solid neighborhood, and building a strong team to support you.

I began shopping for a large construction loan to build a new car wash on the land.