Is the land zoned appropriately for the project I am keen on, and what is the process to get it rezoned.Can anyone make a referral to someone I can chat with?

My overall question is not specific to assessing an appropriate rent, but to understand more if the rental market is still strong. 

I was looking for some insight as to what steps are required to analyze this deal appropriately.

Is it appropriate to discount the rent for a month based on the loss of usable space? 

Check your local laws to be sure you're doing it correctly and as you approach the required/appropriate non-renewal period just send them notice that you will not renew their lease at expiration and they will need to move. 

It will require them to send in the appropriate docs, and you don't get wrangled into a lawsuit.

We were looking for a value add deal where we could utilize our construction experience to rehabilitate the property and we were looking for a smaller older home with a large backyard sufficient enough to build an ADU.

This is the current quote from one of the few contractors that got back to us.My Concerns:- not agreeing to fixed end date- limited itemized breakdown for each item  QuoteExterior: $9000 (not including exterior paint and tree work)• Power wash exterior (plumbing repairs needed to accommodate)• Scrape original paint as much as possible• Paint exterior• Remove satellite dish from front• Remove front awning above two windows • Repair casement around basement windows• Replace siding as needed• Install rear staircase (permit required)• Replace corner post with 6x6• Install 12x15 rear deck at gradeFront Porch: $1500 (not including work on exterior windows)• Rebuild front door to clear hump in floor with automated sweep• Clean floor and repaint• Prep and repaint room• Inspect and seal interior window as needed1st Floor: $5200 + $2.50 per sqft of flooring installed (price of flooring and electrical not included)• Need to take a second look in house if possible I would like to match original flooring in kitchen, which would most likely lower the flooring cost)• Replace front door (32” left hand inswing try to match décor) Jeld-wen 6 lite prehung $398 would need to be painted to look appropriate• Clean walls repair, paint and caulk window frames (color Simply white recommended in scuff defense)• Level and prepare floor for vinyl including removing all trim, repairing and replacing as damage occurs, install nosing and transitions• Install vinyl floating floor throughout first floor (customer to select flooring for pricing) (sqft unknown install rate is $2.50 Per sqft)• Electrical plan to be determinedKitchen: $3800 (not including cabinets, refrigerator, sink, faucet, stove)• Repair damaged floor joist and subfloor• Install kitchen sink• Repair walls trim and paint• Refrigerator location is unknown at this time1st floor bathroom: $1800 (customer to supply vanity and faucet)• Remove toilet and flooring (if subfloor repair is need current price does not reflect cost)• Repair walls and paint• Install vanity (work with customer in choosing appropriate vanity)Laundry Room: $1300• Install matching rear door 32” RT inswing• Install dryer exhaust• Repair walls, trim and paint• (walls will likely need to be opened for electrical work)2nd Floor: $2200 Not including Floor refinishing• General clean-up of walls and trim• Paint• Seal windows as needed• Floors refinished2nd Floor bath: $5050 (does not include vanity, tile, mix valve, tub)• Gut shower• Replace toilet• Install vanity• Tile shower• Tile bathroom floor• Repair walls• Trim• PaintStaircase: $800• Remove remainder of carpet tack strips• General restoration repairBasement / utilities: $350 (electrical, plumbing, and heating is separate quote)• General clean up• Clear all debris from premise Total quoted cost: $34,500 + $2.50 per sq ft flooring installed.

And there could be situations where less than (or more than) a year might be appropriate. 

I manage several properties where we have the tenants take a photo of the meter each month, showing the reading, so that we can then bill them appropriately by subtracting their usage from the main meter.