So check your operating agreement and consult with an attorney knowledgeable with Delaware law (or whatever state it's incorporated in).

Looking for some creative advice that hopefully minimizes the tax bite.My business partner and I own two houses free and clear in our LLC.

The reason the PM contractor bid is higher is most likely the PM will be managing the rehab as well and that is not done for free.

Jonathan Klemm might be able to help.He runs Quality Builders, a tech-enabled GC business in Chicago with proprietary technology including tracking and estimating rehab costs.

You can always sell without an agent, but it could cost you more money and more importantly, money in the long run..think of it like this…maybe a strong buyers broker would’ve urged more caution with the initial purchase? 

Should this issue be a partial responsibility for their absense while leaking and should we deduct some cost from them?

Property is affordable and looks good on paper, but your actual experience may be very different due to costly turnovers, bad renters, vacancies, etc. 

Feel free to DM me your suggestions or to connect!

The result is that the cost to add a hands off ADU is much greater than will be added by the ADU.  

Even with an FHA, the work needed can creep upwards of similar or more than the closing costs, so you're looking at doubling your cost to own a multi-family property.