You should speak to attorney about this option.If you really want the home and want to avoid the drama then you should review the report, see if the items are something you can handle on your own and either close on the home AS IS or ask for a price reduction then close AS IS.

-joeNet CF from investment 1yr= Owners equity+Gain on sale in y1+ Total return from operations for that year.For years 3 and 5 add the principle reduction from the previous years and voila.Exit price(his estimated sale number)- total purchase price= gain.

This will result in either an increase in net income or a reduction in net loss by $136,869 on the 2023 income tax return.

I don't think we will see meaningful reductions in rates in the next few years (if ever).Many areas have SEVERE housing shortages.

The data I am looking at is average price reduction from June 2022 through January 2023 and then also looking at where values are today versus January 2019.

What this means for you s that there is a good chance that your existing SFH becomes rent controlled when the ADU is placed in service (I would like to see the law clarified on this as this practice goes against the rationale of the 15 year exclusion). the reason this is important is that any rent reduction places your base rent at that point for rent control purposes.  

As people mentioned, the homeowner exemption is only if it is your primary residence, but it is a reduction to the taxes that you may not get and there is not an increased rate for you being out of state.

The sellers were motivated to sell and I was able to negotiate a price reduction.

It'll cause a reduction in units available.

The sellers were motivated to sell and I was able to negotiate a price reduction.