Hi Joseph,Why not make story 1 Grandmas house (with everything she needs (quick temporary type remodel--walk in/roll in shower, handicapped water closet, one of those beds that auto tilts up at the head, and a new big screen TV. 

I would leave the modifications and the property could be appealing to another handicapped type older person.Btw there is nothing wrong with renting to older people.

There were handicap groups that felt 3 days was not enough to get out. 

I kind of. know what I'm talking about is that I was a broker around Dallas for about 30 years and the last 9 years I have been handicapped which left me without walking, driving, or working for about 9 years, since I was 54.

She's  handicapped, uses a walker, is on oxygen, and would have a great deal of difficulty getting out of the building WHEN they set the building on fire with their space heaters. 

After signing the lease she is now complaining that she is too old/handicapped and is having a hard time navigating the stairs.

I could be wrong on my recollection/knowledge of the set up, but I believe her very physically handicapped aunt was the official section 8 tenant, and the niece was a "guest" who was not supposed to be staying there.  

NOTE: I am severily handicapped with rehabs because I love to DYI.

There was just a recent case that got a lot of publicity, where an 80-year old couple with a handicapped child was being evicted by the 'bad wolf landlord' and they couldn't find another apartment for $ 800 (which they've been paying) in Chinatown in San Francisco, where that same apartment would go for $ 3,200 now.

If it's not illegal, and you're not handicapped, you can talk to the city about putting a driveway or depressed (no curb) area there so you can walk up the walkway to your house.