Out in small town Iowa our Selfstorage development has dried up due to the high cost of building versus low rental rates.  

As far as where to find these properties goes, that's not a cut-and-dry answer.

. $40k seems excessive for this type of project.

If you start with a dehumidifier right away, you can prevent any growth on the backside of the sheetrock, and once the walls and area are thoroughly dry, the mold will not continue to grow.

For short-term rentals, the same would likely apply, assuming you offer what others don't AND you have a reliable way of screening for animals that cause excess trouble/mess OR pet owners who are not responsible.

Can anyone tell me if carryover basis restarts at 27.5 years in a 1031x, or is it excess basis at 27.5 and carryover picking up where it left off?

Thanks for reaching out, I’ve been trying to find a multi family property out near Lancaster county pa, but it’s been pretty dry out here lately  

We recently just put a dehumidifier down there and are looking to dry lock the basement 

However, I'd advise steering clear of Harris County, particularly in Houston, due to the excessively high taxes.

Even if you do preventative things it won't keep it dry.