From a sales perspective, if you're married ($500k) or if single ($250k), you'd have a portion of the exclusion (%50) assuming the square footage is the same for each unit (assuming a duplex)The remainder (%50) could be 1031 exchanged into another property tax deferred. 

Giving up a guaranteed increase in value with them using their own capital to increase the square footage would seem like a no brainer, but how much are you losing if you remove the drive thru and can't put it back.I would talk to commercial brokers and other owners in your area to see the value of a drive thru.

You can also look into a process called RUBS which breaks out costs based on people and square footage.

Also, value add, adding square footage or beds/baths is still a great opportunity if you want to BRRR or flip.

I've only seen front door cam footage and this dog does not look like a service dog (perhaps emotional support)- as I used to work with dogs and service dogs are highly trained and responsive.

One had been rented by the same couple for 7 years, one needed to be cleaned and some repairs, and the other had been in the middle of a remodel when the original owner died and his 4 daughters who couldn't agree on what day of the week it was decided to sell.Based on the square footage (2024) alone, I got a great deal. 85,500 with 10% down and 10% interest.

Anything structural (adding/taking away walls or square footage)6.

The easiest way to avoid it is to include all services in the rent and estimate use for each unit, based on square footage or number of bedrooms, bathrooms, etc.  

I've seen some great designs in the container or mini-MCM realm, however a lot of those have square footage that is closer to a small house than a true tiny home. 

I always liked to buy two bedroom homes with enough square footage to add a third bedroom.