It's not super complicated, but you can pull out cash to rehab the deal and then put it on the market with no prepayment penalty. 

Making matters more complicated, these Sec. 1031 tax basis calculations are needed before a cost segregation study can be recommended.

This is very complicated.

This means thousands of dollars more in engineering, surveyor, and architectural cost plus months of extra work.Original 2-story garageHISTORIC CONSIDERATIONSTo complicate things further, the structure is located within a historic district.

I'll reach out via pm to see if there is more to the situation that is complicating it for you.

Tenant laws making it much more complicated to be a property owner in Multnomah county. 

No need to over complicate things while still relatively small, you can always revisit it later.

I would also recommend Excel1031, Weiming Peng, I have personally worked with him on many complicated exchanges.

Financing and Exit Strategy for Multiple ADUs: Adding multiple ADUs or an ADU to a multi-unit property can complicate financing, particularly with conventional loans.

This might reduce the pool of interested renters, especially for families with adult children or multiple adults sharing a residence.In summary, requiring all occupants aged 18+ to fill out an application allows you to vet the entire household and mitigate risks, but it could also complicate the application process and cause pushback.