I've also seen houses there in prime locations that have been for sales for years and didn't sell for one reason or another, so building a spec house would also carry it's own risk. 

He abandoned it during his demon years so his best friend took it over and added a couple more people before it desolved due to all going off to college.In college he had a side hustle of finding things on free sites, putting them up for sale, selling the free item and offering to transport it for a modest fee.  

Also the majority of those costs to covnert to a 2nd unit will need to be capitalized and depreciated, but some things (new appliances, flooring, paint, kitchen cabinets) can be shorter year assets vs. across the full 27.5 and IF it turns out that unit is > 50% you can use bonus as well on those items.

There are so many contingent items that can arise. 

I always pay off my highest interest rate items first, especially if its debt.

I have seen some that add on $ per item they send to you Appreciate all of this info  

I recommend teaching him basic construction and property inspection (4-point items); 'lipstick on a pig' can kill an investment and reputation faster than anything in this business.Best...

Added to the items I put which is more detailed and arcuate!  

Take it and add more items to it. 

But they asked for a little space to store their Christmas items.