If I understand you correctly, you are suggesting that I need to consider if paying taxes on this deal is money well spent compared to a deal that I could get OPM on?  

Have them bid on the work you want done so you can compare prices and ask to see their previous work/make sure they are licensed, and can sign a liability agreement, protecting you and your business.

Look at the comps and see how well homes with converted garages sell, how do the days on market compare to smaller homes that have the garage. 

I'd love to chat some time and compare notes.  

I've owned both since 2013, I self manage and these two properties take up 90% of my time compared to the other two that I own farther out.Appreciation has been much slower than I had anticipated; there are still a lot of distressed sales in 30318.  

Multi-family properties are the best for buy and hold in Bakersfield because the price per square foot is lower then a comparable single family home (so they are cheaper to purchase) but you end up getting a lot more rental income because instead of collecting $1000/month on an average sized house, you collect three monthly rents of $700/month for an average sized unit in a triplex.  

If thing is going well then i am expecting 17% ROI this year instead of 0% compared to last year.

They have an A+ rating, but a resource to compare builders would be great! 

Hi Dennis, in general the owner of the real estate that has been remodeled/retrofitted to meet certification standards for assisted living should be able to lease the property for 2-3X fair market rent of a comparable sized house.

http://www.har.com/content/newsroomHouston Real Estate Highlights in April Single-family home sales declined a fractional 0.6 percent compared to last April;On a year-to-date basis, single-family home sales are up 1.6 percent;Total property sales declined 2.0 percent to 7,583 units;Total dollar volume fell 1.6 percent to $2.01 billion;At $278,544, the single-family home average price was down 1.0 percent compared to last April;The single-family home median price rose 3.3 percent year-over-year to an all-time April high of $217,000;Single-family homes months of inventory climbed to a 3.6-months supply versus 2.9 months a year earlier;Townhome/condominium sales fell 12.6 percent with the average price up 4.1 percent to $206,832 and the median price up 7.3 percent to $153,450;Leases of single-family homes leapt 18.1 percent with rents up 2.6 percent to $1,811;Leases of townhomes/condominiums soared 26.0 percent with rents down 1.7 percent to $1,574.