Keep in mind, though, if you just sell outright, you could be looking at capital gains and depreciation recapture, so it’s worth crunching the numbers with a proper tax professional (I’m not one, by the way).What do you think the rest of the community has seen happen to property values since last year, and do you believe it changes the 1031 conversation?

I kept trying to steer the conversation back to the fact that he hadn't paid me rent for 4 months.   

I'd try to fill at least a few spots to get some income coming in, and then do a rolling conversion to MTR as you have the cash to outfit a unit with everything an MTR needs.

The moderator took it down before and said that it should be in the classifieds but hopefully this time around they can see for certain that I’m just having a conversation and not trying to sell anyone on anything. 

Sorry for derailing the book conversation but I think this topic is pretty interesting especially with the way the market is changing. 

Again, this is a conversation to have with your accountant to ensure the benefits would outweigh the costs.Another misconception is that there is little value in a cost seg study for properties that do not have a lot of personal property in them or very little interior build out, such as industrial warehouses.

there is a reason so few flippers do ground up or garage conversion ADU additions.  

I am curious what you provided to the lender and how did you start the conversation?

Additionally, in the R-7 and R-8 Zoning Districts, you need a Conditional Use Ordinance from the City Council to authorize the conversion.

But I got paid maybe 50 days after we had our first conversation and I probably juggled a few headaches for you to make the process as smooth as possible along the way.