You may be able to explain the situation and avoid making alterations to your LLC. 

Many insurance companies do not allow adding a landlord as additional insured.  

Ideally your alter ego can do it, but for some people it is better to ask someone who does not care one way or another.

Not only do they not repay funds, they claim we owe them additional funding for renovations that never actually happen. 

Here is a list of issues with adding an ADU:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Quote from @Conte Cuttino: Makes sense @Andrew Freed so say if we I can make it additional legal space, do you think the 107K left in the property for the return is worth it or should I sale and move on? 

My budget is in the $200-250K range.Please feel free to let me know if additional details would help, and thank you in advance for your time and advice! 

And if you make it a quid pro quo, don't you run the risk of violating the OTA's policy of paying to alter reviews? 

How do you finance the tear down do you add it to construction?

Am I getting greedy to ask for an additional seller credit at closing to help offset some of repairs needed?