All work done to raise value after TOD is not legally in that stepped up basis.  

The city has never raised any question or concern. 

They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year.

They stopped paying the lender and wanted to work something out with the lender but the time is running out (ie the management company did not do any significant improvement during the forbearance period) One of the LP just emailed me and said we need to raise 65k to enlist help from this company.

This allows you to test all the systems and the people involved.  

Did my wife and I get $60K worth of raises and then get hit in the head with paint cans by Macaulay Culkin or something? 

If tenant raises factual defenses such as falsifying the lease or claiming they paid rent, there would be a brief trial which you would be prepared to testify against. 

I always bill back water/sewer/trash before raising rents. 

If you are doing long term rentals and raising rents, you will have turnover of a significant number of tenants after their year of renting when you raise their rent.

Hi Tiffany,A good strategy could be testing one unit as a midterm rental when a tenant moves out.