The property is also zoned CMX2 and can have the first floor converted into commercial space.

You can completely avoid the penalty and taxes if you convert it into a Self Directed IRA. 

Within there, I would guess you could find the discussion about your parking space being converted to storage sheds.You should read the CC&R's, meeting minutes, and resale certificate.

I usually use trend graphix but they only go back 15 years and I'd like to go back 30 years so I was looking at the case-shiller home price index and after trying to find the answer on my own, I cannot figure out how to convert this data into percentages. 

The other option is to convert one room into a rental with its own side entrance, kitchenette, washer/dryer, full bath ad street parking.

I'm thinking of converting the third bedroom into a nice, large bathroom, making the house into a 2BR/2BA.Do you have any thoughts if this is a good idea or have better resale value?

After about a year we converted the other unit to Airbnb and used the extra cash flow to upgrade the property. 

They are two main living rooms, I am thinking about taking one of the living rooms and converting it to a bedroom.

Hey BP,Hoping to hear from anyone who has ever converted a RM1 zoned property into a triplex, specifically utilizing the basement level as a unit.

Basement was converted a decades ago before legal ADUs were a thing...