So you can for cause terminate tenancy and then bring rents to market for the subsequent tenant.

However, the subsequent city water bill still showed a non-trivial water usage (6 CCF).

I can't imagine this lasts long.Provisions of existing lease are as follows -- I created a rules addendum document that says "The following items are not considered wear and tear to the premises, but is considered damage to the premises; subsequently the cost of repair will be deducted from any security deposit." 

Besides all of the things you mention, a local architect can also tweek plans for subsequent homes based on experience building home #1.  

Note however, that if you improve an apparently abandoned property and the legal owner, or an heir to the legal owner subsequently shows up to claim it, the courts will generally not enforce reimbursement for the improvements you made to property you did not own. 

It may indeed crack, but the LVP floor on top of it is a floating  floor (assuming you don't glue it) so it should nicely span any subsequent cracks in the leveling cement without creating any problems for the walking surface of the floor.

I tried talking to the adjustor after her inspection but she was unmoved and subsequently closed the claim.

If you subsequently rent the house for 3+ years, you lose that valuable exclusion.

https://www.thetaxadviser.com/issues/2012/dec/clinic-story-06.htmlIn determining whether the income should be classified as ordinary income or capital gain, the court evaluated nine criteria: (1) the taxpayer’s purpose in acquiring the property; (2) the purpose for which the property was subsequently held; (3) the taxpayer’s everyday business and the relationship of the income from the property to the taxpayer’s total income; (4) the frequency, continuity, and substantiality of sales of property; (5) the extent of developing and improving the property to increase sales revenue; (6) the extent to which the taxpayer used advertising, promotion, or other activities to increase sales; (7) the use of a business office for the sale of property; (8) the character and degree of supervision or control the taxpayer exercised over any representative selling the property; and (9) the time and effort the taxpayer habitually devoted to sales of property.

Rates with the lower seasoning period are riskier and subsequently higher in cost.Stephanie