Focus on a 5+ year plan.   

Are you planning to rent the entire unit at the 2nd year mark? 

Set aside a big pile of cash or rely on a line of credit you won't be using.The oversimplified insurance concept is to pay a small premium to cover a large loss.

do you know how to read building plans or permits?

If you used a loan to rehab your property and find yourself in a difficult position, doing a straight refi (just paying off the old mortgage) will be easier than trying to pay off the original loan and take additional cash out.

But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

would get estimates and see how long to recover the money and your long term plan for the property

I would recommend buying a standard SFH with opportunities for an ADU, or a split floor plan where you could rent out the rooms!

We both run our own businesses but we feel that real estate will help make sure we both maintain our life plans of not needed to work as much any more.

Planning to sell my property in vegas, just wanted a second opinion on if these are typical, fair costs in today's market.