After a few years we realized money could be made, and we started the upgrading.

After a few years we realized money could be made, and we started the upgrading.

Purchased a 3-2 single-family home with a permitted 2-1 ADU in Van Nuys, CA with conventional financing (20%) and added about $30k in repairs/upgrades/landscaping.

We had water damage on property that required 20 days of repairs and replacing flooring throughout the unit with much nicer upgraded material.

Why a deferral was necessary, the steps to accomplish the plan and ultimately paying the investors their deferred cash flow payments.My situation was to redirect investor cash flow payments back into a value-add property so we could upgrade and turn vacant units quickly.

Needs to be gutted, needs new roof, new hvac, new windows, new drywall, fix water damage throughout, rebuild an addition, add a garage, add a 2nd bathroom, new flooring, new kitchen, new appliances, paint, landscaping, redo driveway, redo layout (used to be a triplex but is now sfh), remediate sinkhole, replace asbestos shingles with siding, upgrade electric from fuse box, replace cast iron pipes throughout, put in a pool. 

Otherwise, you'd be out of business quickly.If you hired someone to build, it becomes a bit dicier as for valuation; your upgrades might add substantial cost to the build while not increasing the appraised value by their cost.Examples:  an in-ground pool, custom fireplace, full marble entry and baths.   

She had keys, we upgraded the handles on sunday which is a new set but she never showed up for her walk through.

My property is pretty close to turnkey--will they request a lot of changes or upgrades? 

@David EngYou should upgrade your advisors and hire people who know what they're doing, like @Brian Eastman.