The purchase was $375,000 and the rest was used for renovations.My cost bases in the building will be around $740,000.I refinanced the building with a $900,000 loan.I have an offer on the building of $1,400,000Total capital gains would be about $660,000So, my question is after selling the property (for easy math) lets say I walk away with $500,000 after paying off the bank loan.

Don’t pay $15k penalty to save $13k.

If you're syndicating deals, then it's a cost that will be billed to the syndication.Even after 2,300 units transacted, we pay an inspector to go into each unit and give us a report of the condition, along with pics.

In general I find national firms especially the big boys, the CBREs, JLLs, etc of the world tend to have exponentially higher valuations on listings than the market will actually pay. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

@Tyler KeslingThe market value is what someone is willing to pay.

Assuming that is the case, I would prioritize entitlements over paying off your existing mortgage.

Pay particular attention to the yards, driveways, and exteriors for clues.

Pay extra attention to the last paragraph, rev on a first year listing will be lower, it will get better. 

I will need to pay out of pocket for visible items like paint, the shower, toilet, vanity, kitchen cabinets, wardrobe, and so on.