Because I will be doing the rehab and garage is a clean slate, here are a few options I am considering:Convert it to a master suite, which will make the house a 4/2 with 1500sfConvert it to a studioConvert it to a 1/1 My goal at the moment is to maximize ARV for refi, but I am not sure how the appraiser will look at it.

Make sure you understand what caused that home run.If your rental properties, both Appreciation and Cash flow are making less than $6,000 on a $300,000 investment, then you should divest into the stock market, disregarding the tax implications.Realize you want a less Passive investment and a lot of the BP team could point you to solutions on your current investments. 

Clean the place up, bump it up to market rate, and be more deliberate when screening in the future.

Make sure you are accounting for all expenses, taxes, maintenance, HOA, cleaning, furnishing, etc, etc, etc.If it cash flows...it cash flows.  100% OPM is nuts.  

There's no eating at it, 'cause it's always covered, 'cause I'm always working, and even if I cleaned it off there'd be no room for more than one chair based on how it needs to be situated.  

They refused to clean the carpets and went on and started replacing all carpets in approximately 700sq ft living space.

I'm at the point where at least I know it's doable with zoning and permitting, given I modify the eaves and meet the regulations for exterior wall protection.Offshore architect still working on the floorplan, but conceptually this is what I've decided on.To be honest, I haven't gotten to looking into SDCs, thank you for your tips I will get on the worksheets to figure it out.Boxabl seems like the most simple solution, but I'm fine learning these skills that I might have a change to use in the future.

That would include all kitchen supplies and linens, cleaning supplies.

I have not received rent and I also want to get into the other two units to clean them up and do some repairs prior to renting again.

Essentially all they need to come up with is one month's rent, which is typically the upcoming month anyway, and they walk away clean - no lawn care, no utilities, nothing - and we assume the risk if the property takes longer than 1+ month to rent.