Lease Terms: Determine a monthly rent payment that covers the HELOC repayment (interest and principal) while providing some positive cash flow for you.                    

With that she can determine, of the cash received how much should be set aside for taxes, then gift the ex-spouse a potion.

Additonally investor buyers use matrix like cash flow to determine value. 

Ft)For ARV, it is best to have an experienced real estate agent find comps for you to determine a safe number to work off of. 

My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

You need to determine the best route for each deal you do. 

Determining the cost on something like this is only something you'll be able to find out by talking to the city.

For pricing- take a look at listing nearby your home on furnished finder and FB marketplace to determine what market rents are and the features and amenities being offered. 

The value of the property and how it’s distributed relative to ownership stakes will determine whether it counts as a taxable event, I believe(I’m not a CPA or attorney). 

We often need to ask the right questions to help determine the best route for each individual.