I was thinking painting, an appliance suite, and touch up on the bathroom would possibly be around 10k?

Your market is best suited to speculators not income investors.

But it doesn’t sound like the setup is conducive to that idea based on the layout info you’ve provided (sounds more like an in-law suite setup) and it might not be possible with zoning anyway so I would probably just keep it as-is personally based on the info you’ve provided.

On the other hand, the following law suits against the Army Corps of Engineers would seem to also be pressure on the ACE *not* to allow similar events in the near future. 

We have the ocean, mountains - you can swim and ski in the same day, all type of food and culture, MTV, Yahoo, Tesla, Space X, Ratheon, Amazon, SnapCat, Yahoo, Google - too many tech companies to list, Silicone Valley, Silicone Beach, two pro football teams, Olympics coming within a decade, hikes and amazing scenery, Hollywood, USC, UCLA, and amazing weather, LA San Diego, Santa Barbara, SF Bay.

Love this community though, and all the resources BP shares.I was curious if anyone has ever used a PM company called Suite Properties out of Detroit.

My thought is that if the lease is sloppily written, there may be other provisions that contradict that one statement you quoted.What's the total loss they are claiming with the suit? 

Adding to what Jonathan and others said, it doesn't have to be a walk out to be turned into a suite. 

Purchase price: $330,000 Cash invested: $50,000 First house ever bought with intention to build basement suite while living upstairs.

Enjoy a very long paved driveway and a larger than average lot...perfect for a swimming pool.