Any suggestions on how to adjust for this to come up with an ARV?

Keep track of all your expenses from your remodel and that will adjust your cost basis, reducing your capital gains, if you don't qualify for the exemption.

My point is, sometimes asking how can I make this work means adjusting to the point of doing a different style of real estate investment if that's what the market dictates for you.

If L&I denies your application, you will need to get a special exception and variance from the Zoning Board of Adjustment (https://www.phila.gov/departments/zoning-board-of-adjustment/)When I initially responded, nothing about zoning was listed when applying for an activity license.  

The blue line is the non-inflation adjusted $/SF.

@Soh Tanaka Thanks for the reply; my understanding was that the opening balance should be 0, since it's a line item QuickBooks makes up and one that should either be deleted altogether or adjusted through a journal entry allocating the opening balance to an equity/owner's capital account.

My best bet is to probably do as you say and tell him it’s included and then adjust the rent accordingly in the future if he continues to live there multiple years or when another tenant moves in. 

(Check rentometer and neighborhoodscout to see if your area have a high rate of rental property, then ask your PM to adjust your rent accordingly, PM love rent increase because they charge you on %) P/S: if you decide to use Real Protect, please let me know how is their service.

That's a really good level of return, on a risk-adjusted basis given my perceived-risk level of the rental market, and I maybe spent 10 minutes looking these up, not even looking for a good deal. 

Sewer:Minimum quarterly charge- $10.00/quarterSewer fee rate- $6.32/100 cubic feet for first 1000 cubic feetSewer fee rate- $7.12/100 cubic feet for all usage over 1000 cubic feetElectrical:Delivery services:Customer charge- $5.60/monthDistribution charge- $2.97/ kWhTransmission charge- $2.308/ kWhSupply services:Generation charge- $7.30/ kWhPurchase power adjustment- $0.43/kWhHydro Credit- -0.66/kWhAll help is appreciated thank you!