There's also the possibility of adding two additional apartments in the attic, although an additional ingress/egress would need to be added.  

Hi Lisa,I'm happy to try to help structure something for them to help keep their property and make their cost of living more affordable by Adding an ADU and for them to stay here in San Diego...it really depends on the location of the property and zoning to determine if the ADU is the right way to go...in the right areas and zoning you can add a ton of value by adding adus and other areas/zoning, you may not be adding much.

Oh great, I requested to be added to that meet up.

It's not like resort fees on hotels where they actually show you a lower total price and then tell you in the fine print that resort fees will be added on top of that later, and don't actually show you what your real world price will be at any time during the booking.

Based on what you said, if you didn't place the property in service you cannot deduct the building costs as a rental property, but there are a couple of options to explore:Building costs can be added to the purchase price and subtracted from the selling price (this will reduce capital gain and taxes)If you lived in the property while renovating it you may be eligible for Sec 121 Exclusion...

We will also be adding some open shelves above the sink, in between the cupboards, so there is no net lost storage..

ADU's can also be added to multifamily, which is what I am doing.

Also, if I can show the reno is possible to make 2 additional legal units on the 3rd floor, and get estimated market rents for the units to be added can i then use the estimated market rent on units that are to be built to also increase income to help qualify?

Hey there, I am focusing on smaller MF properties 5-20 or 5-30 (still formulating my strategy) that allow for value add (i.e. there's a decent delta between the gross SF and leasable SF that would allow for another unit to be added, or garages that can be converted into maker spaces of some sort).  

Once they are approved, they should be added to the lease and 100% subject to the terms.