So your #2 "half room" would likely not appraise as a bedroom.

According to my understanding, lender will cover 100% rehab, so we just need closing costs (fees, inspection, appraisal, down payment etc).I am local to the deal.

I’m taking a RE appraisal job in Houston and looking to develop a small MF (two to six family) property.

You will also need to notify the county property appraiser that you are still the beneficial owner to make sure that they won't reset the cap on the assessed value of the property for your property taxes.Regarding the note, as you are not changing the name of the mortagee, there is no transfer of the note and there should not be any doc stamp.Also, avoid the quit claim deed, use a warranty or special warranty deed instead. 

Negotiation - met the lower appraisal amount How did you finance this deal?

Leveraged my FHA offer with attractive contingencies and was able to use a lower appraisal to reel in purchase price.

This should allow for higher appraisal when I reach the time to refi into conventional package.

Do you know the value that an appraiser is likely to give for that ADU in you area?  

BP - looking for help with a MFR appraisal. 

NO junk fee's just appraisals.