Frankly, this doesn't sound so bad compared to the return I could get on a 10 year bond.   

@Steven Nguyen The City has regulations, primarily for the purpose of dealing with mini-dorm situations around the SDSU campus. 

Compared to what?

But - check out what the comparable properties have that your property doesn't and make those changes.

Have you taken any bids from contractors on similar jobs and compared item cost? 

This is really unique situation, the residential properties near by has different use, therefore not good for comparables. or do I let them do their market research any way?

When comparing (CMA) multifamilies, for example a duplex, do you compare them to other duplexes?

Renting a 4 bedroom apartment is pretty inexpensive compared to Boston which is where we live.

You can ask  broker for "broker opinion", as if you would consider selling. they would provide Comparable Market Analyses.

No one can predict the future, but if you'd like I can send you a market update of how Neptune real estate is performing YTD compared to other nearby towns.If you do decide to pursue Neptune, my office just listed 3 properties there (one single family, 2 multi family) all at 60-65% of assessed value and for $175,000 and less.