Hi Gabriel, In a general sense, the rentability of the units will be easier with a garage, but a garage will only generate about $5K-$10K in additional value each, whereas if you convert the 2 garages into a 1BR ADU, with market rent in Bay Ho, call it $1700 monthly and $20,400 annually, would increase the value by the multiplier of that income (call it 17GRM for Bay Ho), would increase the value from an income standpoint by $346,800. 

Which market in your opinion has better opportunities (employment, appreciation, rents vs ownership, eviction laws).Thanks

I’m now self employed and have an LLC for my real estate investments.

Annoying to re set up payments etc but luckily the guy who helped me get the original loans has remained employed through it all and has helped me navigate awful customer service departments, which just gets worse each time.

To offset a large gain from the sale of your business, you would need to acquire a massive portfolio of rentals and generate massive losses.

Add to that the various "HQ2s" that are coming which implies the major, high paying employers in the area will not be hiring as heavily as they have in the Seattle market, and you create a possibility of lower demand plus higher interest, likely creating stagnant prices in the near future.Therefore, back to my first comment: if it will cash flow on a monthly basis when accounting for management, leasing commissions, repairs and maintenance, Capex, taxes, insurance, loan payments and vacancy, then it won't matter if you see appreciation in the shorter term.  

Is two properties free and clear generating enough cash flow for you? 

I was told that, since they reported my income in box 3 (instead of 14- for payments to attorneys) I have to pay Self Employment Tax (SET) in the U.S.- Is this correct? 

So your "friend" with 5 other properties on the street is willing to basically give you a property that generates cash flow each month...?

There is also an ordinance in place that prevents termination of tenancy for owner occupancy purposes until 60 days after the state of emergency has lifted, which is expected to be cleared within the year and would just need to work around this as well).Once this is accomplished, you can then decide if its better to let it sit as is and generate its own appreciation and rent increases, or exchange the profit into something larger.