The mistake looking back was that there was no clear exit strategy proposed other than criminal activity or unanimous liquidation.  

We have a "make it your own home" policy, where we let tenants know if they ever want to make a change to the property, they may give us a proposal and we will consider it.

@J Scott - Working now with a Land Surveyor for soil tests and they help with land division proposals as well.

Try to buy lunch for a city council member, to ask them about any proposed changes to the short-term rental ordinance.  

While on the phone, they told me that while there are no rental restrictions today, they are working on proposing them.

@Anita AhujaIf they are buying the deal at a 5.4% cap rate and the Year 5 cash on cash return is only projected to be 7.1%, how do they propose to get to a 15% IRR?  

What are the thoughts on how proposed tax reform will impact real estate investors?

Hi Wesley,Here's a proposal (attached image) based on what I can see from your post:1) Expand the Bonus Room into the Bedroom to create the new Kitchen 13'x8' or 14'x8.Current Bedroom becomes closet (valuable storage space, and you get to keep the access door leading under staircase)Current Kitchen becomes Bedroom2) Move drain and water supply to where the new sink is3) Mudroom becomes Entrance, close off redundant door4) You could remove the door Entrance/Bedroom and widen its opening5) New Layout is a nice small but comfortable Studio with proper entrance, decent separate kitchen and good storage spaceWorks?

The Declaration, Covenants, ByLaws, and Rules are ALWAYS the first step in addressing an HOA/COA matter.That said, I wonder if you can provide us more information on the community or complex this is proposed for.

While Congress enacts taxation legislation, the IRS writes enforcement and criteria.