I also have a realtor client who has an East Nashville listing right now that is fully remodeled with a walk-out basement that includes a kitchen.

In our municipalities, once certain corrections are made everything in certain systems has to be brought up to modern code, air tested, et… which can turn into a larger project and expense than originally planned.Along with foundations I would include overall general structure.

If you want to shoot me your spec. sheet including package pricing, I'd love to take a look. 

It includes a full kitchen, full bath, and a small bedroom.  

Includes free dropbox storage where you can store your quicken backups for extra protection.

Your question however is about your local property tax assessment which has absolutely nothing to do with anything IRS, including 1031 exchange.So remove all of the irrelevant parts in your story and distill it to your question.

@Chris Seveney, as I am continuing to learn, I would not totally rely on audited financials, UNLESS, the audit goes all the way down to the property entities themselves and are auditing the cash flows from tenant payment through to full investment level, including owner contributions and distributions.  

So, the profit is taxed as ordinary income, including self-employment tax.Hope that helps. 

I finished my MBA in finance, which included accounting courses, so I thought I know enough about accounting, especially depreciation,1031's, taxation that I can handle doing accounting and filing taxes myself.At the time, I've been advised that I should have good CPA's and tax advisors if I'm engaged in so many businesses.

I have not had a W2 in decades and am able to get financing just fine.Next there are reasonable opportunities everywhere, including LA.