We used glue down vinyl plank flooring that did not photograph well.

I know I will have to file partnership taxes, that's okay, but why UBIT if I don't engage in unrelated activities? 

I took the dive and made the offer at $365k because I didn't want it to slip away - the seller had it originally at $385k but there were no takers until he dropped it to our price.We got the keys on 9/25 and have been feverishly doing renovations to the basement unit to make it more livable and we have reached a good stopping point after tearing our the carpet and installing vinyl laminate planks, taking out the cabinets and putting in Ikea ones with butcher block counter tops, and finishing with base board and quarter round molding.

It was made clear that you MUST be engaged in the appraisal process from the very beginning to avoid problematic results at the finish line.

@Helen M LeyzerovichWhile I am not actively engaged in the area, I do have access to data, which corroborates @Joshua Braskett 's firsthand information.Home values have fallen in the Stuyvesant-Prospect neighborhood and so has the population. 

Before engaging with a lawyer I suggest contacting your state's Insruance Commissioner - businesses are always responsive to the regulators that allow them to operate.

We did a full rehab on the inside and outside doing new paint inside and outside, new plank flooring, remodeled the kitchen and both baths, blew open the floor plan by eliminating some walls areas, redid some of the ducting for the HVAC system, new lighting throughout, front and back landscaping, leveled the floors, updated the light switches and outlets throughout and removed a fireplace that was badly damaged in an earthquake.

Here's a link to the SF rental ordinance I'm referring to: https://sfrb.org/topic-no-154-limits-rent-charged-master-tenantsMaybe my interpretation of the law is incorrect but I would recommend people, especially in the SF Bay Area, be very cautious and know your rental laws thoroughly before engaging in any non-owner househacking venture.

I am debating between vinyl planking and carpet.

I recently joined Brew City REI on Facebook, I try to make it a habit of engaging daily.