Just because they sent a letter from an attorney does not mean they are filing suit.  

Living the life of luxury! 

Would you approach from a Gut and rebuild or is this better suited for a tear down? 

I agree with you guys, at this time I might just be better suited in purchasing a house in Mesa and renting out the 3 rooms.

This question may have been answered in previous forum threads, so use the search tool to find threads that may answer your question.Also, your question is better suited for the Landlord Forum or Multi-Family Investor Forum.

Unless my net worth is $10,000,000+ and my income is $1,000,000+ per year, I just don't see myself buying any luxury items.

We are planning for an attic master bedroom suite + loft.  

My inspiration after contacting 100 potential investors to create my Dream 25 List is now stemming from all the "Sure, I'll invest with you" a few months back to *ring ring ring* *voicemail* aka *crickets*.The thing about disappointment as an entrepreneur is that you can re-calibrate and go at it again..It's so easy to be discouraged, it's so easy to throw in the towel, it's so easy to convince yourself that this may not be your strong suit.. 

There are a few other co-working space on other parts of town, most of which still have some co-working, but have made a transition to single offices and suites for small companies.  

Finding a loan for your friend might be better suited in that section.