There are three common ways, one is to do it strictly on an hourly bases, another is lump sum (usually based on their in-house calculations on who needs to work on it and how many hours they think it will take to complete) and lastly they could do it as a percentage of construction cost (usually in the 5-10% range, could be more).  

@Lamont Marable check your local building and fire codes...putting living space below grade carries a lot of life-safety requirements and needs to be permitted...worst case...if there is a fire and tenants cannot escape...and you knowingly put living space below grade without the required safeguards in place...RE investing career over...Just do it right if you venture down that path...hiring an architect is always the best approach to something like thisBest of luck

The word intent isn't in 26 US Code 1031. 

You are probably aware of the reset basis on capital gains at death, which is part of the current tax code.

It may also be possible for co-owners of certain types of property to elect to be excluded from the partnership provisions of the Code pursuant to Code Sec. 761 .The IRS has issued guidance on when it will rule that the ownership of undivided interests in rental real property does not result in an entity.

It comes with less strict terms.

I am an agent and have access to MLS so my ARV is based on properties sold in past 90 days in the same zip code - same bed, bath and +/- 200 sq ft.

EHO, Insurability Code: IE, subject to appraisal"I understand the first sentence.. but the rest is foreign language...Also, the listing has "Please see agent remarks for offer submission instructions" but I couldnt find any on the listing...Please advise, 

If you go any other route, as in buying a strict investment property, you will need to put down at least 25%, instead of the 3-5% with a primary residence loan.Hard Money won't help you much, as they still have the same requirements and worse rates.

It belongs to the tenant and generally there are strict laws about where they can be parked and how you must report on them.