The replacement cost (cost to rebuild, not the value of the property) data providers are pegging the quadplex at close to $2M and most 1-4 unit rental property insurance programs tap out at $1-1.5M before you'd end up in a commercial insurance product.

However, have you ever gone downtown to the steps near the capital and witnessed a Trustee sale? 

Many months of costly vacancy, local market rent & resale deteriation, special assessments, property taxes and maintanance fees suggest a quick sale would have been the wise thing to do 2 years ago.

I have the credit, experience and the knowledge on how to underwrite the deal to show their ROI in this arrangement vs a traditional sale. 

@JR Gonzalez, You can allocate the proceeds from your sale anyway you want. 

Purchase price: $137,000 Cash invested: $90,000 Sale price: $285,000 This was a single family home in Bates Hendricks.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

This defers capital gains and depreciation recapture taxes on the sale of your fourplex.After converting it into your primary residence, you may qualify for the primary residence capital gains exclusion ($250K single/$500K married), but only for appreciation after the conversion; gains from the rental period remain taxable.

Quote from @Jadan Williams: Hello bigger pockets experts, I currently live in california but will list my house for sale within the next couple months i want to use between 100-200k for an investment but not sure how to go about it.

These agents work for free till they close a deal, so make sure you know that going into it.