I was considering ripping out the carpet (has some tough stains), installing new vinyl wood floors, repainting the walls, do a thorough deep cleaning, and converting the loft room back into a bedroom (putting up the top half of the wall and putting a door in), and then finally rent out the townhouse.

As far as the cement goes - around the pipes in the walls/ground, there are gaps.

We have had an engineer come out to open up the walls and estimate costs.

The renovations I would be proposing would be replacing the kitchen cabinets and countertops and replacing the bathroom floor and wall tile.

In that area it defines where the unit-owners property begins (ie bare walls or studs in, etc.).  

The issue is that since the "garden wall" surrounds the ADU but is also technically part of the house's backyard, how do you decide whom to charge for the water or if you try and apportion the charges, how do you decide how much of the "garden wall" water to charge the ADU for?

Had a massive flood in the basement, a collapsed wall, 2 ft of mud.

Had a massive flood in the basement, a collapsed wall, 2 ft of mud.

The kitchen cabinets had been removed but the granite was still leaning up against the wall, most of the house was tiled and it was completely salvageable, the hardwood flooring in the living room and laminate in the bedroom was in good shape and all of the mechanicals were clean and in working order.

Do not end up as the sucker who spends all his days in the cubicle farm mightily wishing he could just spend his days working even harder thirty feet away in one of the tiny managers' offices lining the wall, in front of a window that does not open with blinds that are never opened.If your parents don't understand, well, it ain't their life.