Spoke to them about out, my thought process, and I could be completely wrong, is that surrendering for cash = tax penalty.   

Hi Chris,Congrats on completing the renovation project.I am happy to connect if you would like.Staci

Seems risky waiting until after the purchase when holding costs will start to pile up, but it also seems silly for the contractor to walk the property with you, write up a detailed scope of work and risk the buyer not actually completing the purchase.

All of that being said, in the eyes of the City, if they do not have any record of work ever being done to finish the attic space then regardless of if you make it separate unit or a Duplex, you would need to obtain a building permit and bring all work completed upo to "Current Code Compliance".

@Josh Haney I believe the legal/compliance piece is fairly well covered by those who already commented I completely agree that it's important to retain legal counsel to assist with drafting and also loop in an accountant to confirm structure is arranged with tax efficiency in mind. 

Oh, yeah, he also identifies his “bias” as full disclosure.The biggest “annoyances” to me are1- people with 1-3 posts aggressively supporting some guru and attacking people posting negative experiences with said guru2- people pushing their offering only and not engaging in any other discussions3- people participating in forums with a “hidden” agenda or undisclosed bias.4- people asking simple questions the answers to which can be easily obtained with a Google search that they’re too lazy to work5-  salespeople that disguise their product to look like something else, fudge the “numbers” to show an inaccurate comparative return, name the offering “infinity (something) and claim it eliminates taxes, provides liquidity, replaces your banking institution, and creates a “wealth cycle” in a formula used by from Rockefeller to Musk.  

He wants out of the business completely. he just wants to retire and enjoy the fruits of his labor.

Additionally, you can claim depreciation on the portion of the property used for rental purposes.

that fear turns into vacancy fear. the vacancy rate in the neighborhood is 1.7 so i used 2 . if i go to 3 it turns coc to 27 and -25$ cashflow from shownOverall goal is to hold forever, Cashlow at 66 and beyond with complete debt paydown , pass to kids when i die , they use the cashflow for their primary residences and beyond. (10 of these will do haha... but really)

Seems like the value is there if you are able to complete the conversion.