@Jay Hinrichs I agree ADUs definitely offer a great opportunity and I think is the most feasible in this market as multi-plex prices are through the roof. 

Seeing that this appraised at 260k and you're looking to put in 22k extra to get to 282k...what kind of appreciation are you expecting in three years that would offset what is likely a monthly operating loss, as well as the costs to sell? 

However, you probably should listen to the experienced individuals who are challenging the business feasibility and mathematics.

My parents decided to sell and just cut their losses rather than fight the board and deal with them.

However, real estate prices tend to be a lot stickier than other asset classes because people don't want to take a loss on them and tend to hold out to at least break even. 

Most investors will have large losses they can carry forward for several years. 

Would it be feasible to raise the rent above the current 2017 guidelines of 1.5%, if the tenant agreed?

., sold the property without any loss) after buying a property from a "turnkey" provider?

But in the event there is a loss, it is essentially a short sale scenario.  

Since you're related parties any gain would be taxable as ordinary income and any loss would be nondeductible so it'd be best to make the transfer price so that there isn't any gain or loss so she can avoid paying tax on the gains or losing out on taking the loss.