After reading the other comments, I feel like you hit the nail on the head!

Real Estate.How about if we leave it at this:For those of you whose goal is to preserve the integrity of the appraisal process, do what Bill and Real Estate suggest.For those of you whose goal is to get your appraisals to come in higher, follow my advice in the original post above.

There are also a lot of benefits surrounding sustainability with those tiny houses and Colorado loves the environment and preserving natural resources.  

Doesn't mean you can drive a nail straight, but means you're a decent fellow..... 

It just preserves the ability to obtain 6% concession without it being reduced by any buyer's commission being paid. 

As you due your due diligence you often find elements of the existing construction which can be preserved.

Other wise it will only do damage in my opinion.This is but MY personal preference and this doesn't mean what I say on this matter is factually correct.Other than that, you nailed it.

And if income passes into the holding LLC, what is the best practice for pulling that cash out to utilize for other purposes while preserving the veil and not commingling.  

You might get him down this time for the HVAC, but I think preserving the relationship is more important. 

Renting to college kids sounds great in theory but if you want to preserve your property, you might want to consider more mature clientele.