Selling an investment property can result in significant capital gains taxes.

These include the actual cash flow (NOI), Your net cash coming in after expenses and allowancesDepreciation - the tax benefit that lowers your taxes. 

For illustration purposes if I were given the opportunity to finance my construction projects at 8O% LTC full recourse or 70% partial recourse I will select the higher levered recourse option because have confidence in my projects knowing the debt is sub 60% LTV and want the benefit of leverage. 

The appraised value seems low and I am trying to understand the best strategy to challenge this value and the cost / benefit of going through the condemnation process. 

- Is there a cost/ROI benefit of a 2 floor ADU plan vs single floor vs Loft ADU floor plan?

Yes you have to pay capital gains on selling your properties, but you will recover that quickly with the high returns. 

You’re in the right place to meet like-minded investors and gain local insights.

Trying to bend the rules will always come back to get you and could end up costing you more at the end of the day than any benefits you gain from it.

@Allan Smith We've seen SFH properties with a purchase price as low as $150,000 benefit from a cost segregation study.

Sometimes you're better off just selling, taking your tax-free gains and going from there.