Example would be for a SFH fixer upper in grandma condition:   $10k for demo and permits and prep, $10k for wall removing and layout revising, $10k for basement framing, $10k for drywall, $20k for paint, $30k for flooring, $20k for kitchen, $20k for baths, $20k for any MEP upgrades, $10k for trim work, $10k interior finishes 

The house has a bit of potential for rental as house Hack as we are planning to live in the upper part and rent the basement.My questions is, is that possible to convert the basement into 1Bed 1Bath, with over in the kitchen and shower?

   $100k would be tight.A 3/2 -- 3/2 no walls moved;   $90k is possibleA rental rehab;  lipstick, no HVAC or roof, keep everything, paint kitchen cabs and scrub up bathrooms. 

The landlord responded that the lease was not subject to the Rent Adjustment Program since the rental was for “sole use of one or more rooms and shared use of common areas (such as a kitchen) in the residence,” which was a single-family home.In its decision, the court focused on the definition of a “dwelling unit” as used in the exception found in Civil Code section 1954.52(a)(3)(A), which provides that “an owner of residential real property may establish the initial and all subsequent rental rates for a dwelling or a unit about which the following is true…It is alienable separate from the title to any other dwelling unit….” .

Depreciation, the tax write off from my then high paying job had value.Over time, rents increased and property value went up.

Needs new flooring indoors in all areas (4 bedrooms, entrance way, hallways, 2 bathrooms and kitchen, 2 new windows, and 3 stand alone ac units for kitchen) Needs kitchen remodel, 1 possible new bathroom remodel.

Might be tough from area to area, but I typically find that homes built before 1950 that were converted from single to multi family are 9 times out of ten - a full gut rehab and way too expensive for first timers.

What is the kitchen like?

They put their old hand me down furniture and cheap plastic Dollar Tree kitchen utensils in there, pass off the management to Vacasa or Evolve, and expected to make a killing.

I don't understand why my taxes go up a few bucks when I change move an item (a kitchen appliance) from bonus depreciation to an expense on schedule E.