In terms of the lease agreement (CAR Form LR), it states: "Tenant shall be charged for all repairs or replacements caused by Tenant, pets, guests or licensees of Tenant, excluding ordinary wearand tear.

If they lived there 2 out of last 5 years then they could take the 121 exclusion, which excludes $250k of Cain if single or $500k of gain if married and files jointly.

To answer your questions it's roughly $200/sf for basic finishes for construction of the home but excluding potential site work and all exterior work in construction. 

@Garrett RichardsonDid your Mother-in-Law live in the condo in Santa Cruz - She should talk with an accountant to see if she is eligible to exclude the gain on sale via section 121 exclusion.The exclusion is higher if she is married.She may also want to think about an installment plan where she can be entitled to interest income from the buyer if she needs some income coming into the future.

& HOA, excluding any unknown repair costs and depreciation.

I actually have some properties with insurance policies that specifically exclude roofing coverage & have saved a lot on premiums.

“A one-week rental could turn into a summer-long vacation at the beach, while the property owner is forced to cancel contracts, loss of income (sic) and ruin relationships with renters from previous years.’’Murphy’s executive order placing a moratorium on evictions during the public health emergency specifically excludes any “hotel, motel, or guest house, or part thereof, rented to a transient guest or seasonal tenant.’’

In your experience, will an appraiser exclude any properties from the "good" zip code when I go to refinance?

@Jerry ThaoYou won't ever be able to exclude the whole gain since its a 4 unit and you only lived in 1 unit.You can potentially exclude a portion of the gain via section 121You can potentially exclude the other portion of the gain via 1031 

If utilities are often excluded, it could make it harder to recoup the cost of non-separated utilities in a small multifamily.