I would have to do more digging to understand how Zillow would or would not adjust for that.  

Actually its risk adjusted return that is the most important.

Heat pumps are ideal in our climate.

The studio was sold last year and that is shown on the records for the house, I think because of an adjustment to the RM.

Something we have to deal with and adjust accordingly but like everything else in the past the show must go on. 

If the county inspector says you have to fix certain things in order to pass then make the adjustments.

Depending on what the lending climate is like when the time comes, I should have enough liquid to have the down payment for a 1 million dollar building (depending on what lenders will be requiring for reserves).

In warmer climates, a slab on grade may be fine, but not in an area that experiences seasonal freeze/thaw cycles.

@Samuel LemaTaxable gain = sales price less adjusted basis(Adjusted basis = purchase price + improvements - depreciation).Tax rates for everyone will depend on their own tax profile.Some people live in a state with a high state income tax.Some people live in a state with no state income tax.Some people are in the top bracket, some people are in the lowest tax bracket.etc.

How do people in cold climates handle homes that need exterior paint (basically all homes in my price range to some degree)?