I guess an appreciation play would be the only thing that makes sense over here.

Not a single one of the properties I was under contract for made any sense once the massive price increases were put in play.

I wonder if the change of density could off-set cost of underground enough to make it make sense.... 

That makes no sense." 

The owner representative (not an agent, just family) seems to not be a fan of this option because he does not understand it.Option 2: If option 1 does not work, or they are unwilling, the offer I see as valid for this property to make sense is about $290K plus taking over the solar loan.

My vote is invest in other markets where the money makes sense and then take that profit to visit whenever you like. 

Hello Mike, It is nearly impossible to answer this question without taking a deep dive on the numbers of each but often times in expensive markets like Seattle the cost of construction is so high that it doesn't make sense to tear it down unless you can build something way bigger/nicer.

That makes sense from a buyer and renters perspective.

Only the first can be corrected, but us making a mistake and getting anything less than 5 star review is stricly unacceptable in my eyes and my team also has a strong sense of ownership in their position and loyalty to my company.   

Now that is a very high level example but the appreciation is not gone if that makes sense you will capture the ballpark same appreciation if the properties are comparable.