I'm starting a conversation with another local bank but I have a feeling it won't go anywhere.

It's just not going to drop dramatically overnight.I love this topic and insight into the conversation!

I have also seen some garage conversion ADUs get valuations below ground up construction.  

I had one conversation with a CRE lender and she indicated that CRE cash-out refinance is not really available these days given market condition.

I've been in massive debt before with a house remodel, addition, and ADU conversion.

Maybe a garage conversion or ADU. 

I can justify any price (and some high fee syndicators are still doing so), if I just play with assumptions, prepay and buy down my interest rate, and hope that sub-5% cap rates will be returning in the next few years.But if you know your market and market cycle, have an idea where interest rates may be going (this is an educated guess for all of us), and then have your assumptions, you can certainly have the conversations you reference with brokers and see what their take is on pricing and if it is worth writing.Finally, I have said this before and will continue to say it, whether we are talking single family homes or 400 unit apartment complexes, off-market purchases do not make something a deal.  

We have small conversion buildings, 3 units in a building.  

The bonus deprecation rules apply here and it would be a conversation you would need to have with your accountant as to what the best course of action is.

To which I ask, what are you doing/implementing to prospect to get in front of homeowners and have conversations about real estate?