These improvements significantly increased the property’s market value and rental potential, attracting premium short-term rental rates and ensuring high occupancy.

With a Red Lobster at 6.55 rate in 10 years with increases you would be right at an 8 cap.

Even if one thinks market values will continue to increase over the next few years (I have my doubts), I would not invest in finishing a basement. 

Our real estate expertise was instrumental in maximizing interest and attracting offers.

You could also present the deal to other local investors or private lenders who might jump at the opportunity, given the attractive terms.

Some other areas may attract influx of residents from other states who find triplex on very small lots attractive. where do I find that data?

Colorado Springs is a beautiful place to live and will continue to attract new residents from all over the country for decades to come! 

Agree with the other guys. 4 units is best, you have more tenants and opportunity to increase rents if one or more tenants turn over. 

I am a landlord, broker, investors, etc. and have section 8 tenants as well - luckily I have a good relationship with my tenants but man oh man... dealing with their case worker was almost like they were paying out of their own wallet for a rent increase when in reality HUD had updated rent guidelines.Do you not have an online portal or account that you can access the section 8 landlord portal via?

Property is located at a wonderful highly traffic location. 18k cars a day and will only be increasing. 5 of the 13 acres is zoned commercial, the back 8 acres is zoned large lot residential.