I have till mid-late 2025 to sell without capital gains tax (< $500,000 couple).I'm trying to figure out how to improve the performance of this property and have some thoughts about it, but would love to get feedback from other REIs.Option 1Add a ~800 sqft ADU in the backyard which I think costs ~$250/sqft (total $200,000) and I think could rent ~$2,000/month.

Or any suggestions on how to determine how a property will perform as one?

The seller likely has the right to sue for specific performance though.

I'd never touch that I'd just help along and find a builder who builds for investors and skip the self performance of things you'll get in the way for any experienced builder. just you saying that to me as a builder I wouldn't even call you back 

If Oregon is of interest there is a significantly lower entry price per door with somewhat comparable CA returns, certainly a luxury STR would perform and be manageable with a local team. 

You would have more fun performing your own open heart surgery than you would dealing with Caliber. 

I can tell you it seems like every day people say they can finance some of these things, and when they get down to it, they can't perform. 

Most lenders will require a 15-20% down payment assuming credit is strong and property can perform from a producing income standpoint.  

.- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

And keep in mind, were in a world now where a former POTUS and very probable future POTUS, has been hit on similar charges, on when lenders were not upset, monies happily received, no non-performance issue, no victims what so ever......