If the goal is to demolish, rebuild and resell, that's exactly the same (from an IRS standpoint) as just rehabbing and reselling. 

I have a project in downtown Palo Alto which presents an excellent opportunity to demolish the existing building and rebuild a 4+ multi-unit residential building. 

Scope of work on an $80k budget is: * build out ofbasement apartment down to the studs* upstairs new kitchen on existing footprint* replace/enlarge 2nd story rear deck* new roof, door, & electrical for 2 car garage* add a bathroom in existing finished space on the 2nd floor OR rebuild one gable at a lower slope to allow finishing out current space under the eaves as a master suite* perhaps other stuff we haven't thought of The questions are A) how do you approach down-to-the-studs level remodel projects? 

I can rebuild a sport bike motor from the ground up (I have in the past) but that doesn't mean my time doesn't have a highest and best use. 

So if the plan is to buy and hold, maybe not an issue, but to buy and build/rebuild and they plan on selling is a big issue as you cant get adequate title insurance.  

If you purchase anything in UC, make sure you get the rebuild letter prior to closing. it is the only legal document that says how many units are legal in UC.

Architects like them b/c they can span longer and makes design easier, but cost more and also burn faster if a fire.Architect put 6:12 roof, 5:12 would have been plenty and saved us a few bucks, etc...If we were to rebuild our same 2600 sq ft home with same finishes, I bet we could save $20,000....

The other was 6-9k for removal  only, no rebuild.

I wanted to know if there were lending programs that will allow her to build/rebuild a new home for the purpose of renting, even if she has to reside in it for a year(as some loans do)?

Plus, Portland has gone to H-ll and it needs to collapse and rebuild or at least change the city mayor and city council before investing will do you any good there.