not sure if PP cost money for BP members does it ?? 

But once they give it to you, you inherit their cost basis and have a taxable gain.

A friend of mine, Ryan, who invests heavily in Baltimore, realized his interest costs were eating into his cash flow.

Then do a 'seismic strapping' to aid in halting further movement.IMHO this should cost closer to $20,000.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.

yes create the addendum but realize the tenant who has been paying could ask to be reimbursed for these costs as well as not accept the addendum.

What are the costs for the value adds, the expected hold time, and the expected sale price? 

I assume a higher upfront cost as far as land purchase and the actual build but you would have a brand new house, instant equity and hopefully maintenance free for quite a while.

Alternatively, if I can find a lower cost single fam home where I can cash out 100% of my investment I would do that but those have been harder to find recently. 

In other words, you will incur the cost of demolition just to get the raw land.