Do any of your rentals have unique exposures (pool, playset, pond, significant drops in elevation/grading, high traffic area, etc.)? 

the storage carried the project.it was a class A space  as it had to be to hold up the commercial on the top floor. it had elevator etc.what I found is this is really not real estate investing.. like a income property like you buy.. its a business.. its the business of selling people a place to store their stuff.. lots of turnover .. and ours was not big enough of course to have on site management and I did not want to office there.. so it was really a pain in the butt for us to manage..

I would put together an elevator pitch and a small business plan showing them how these properties will perform.

In my area, I have received variances for lot size being too small, insufficient off-street parking and insufficient structure elevation (all different projects), so they can been done.If you are unable to subdivide, I would not proceed with the project. 

There are more people at the $130 market and who want to do drive up; versus buggy/elevator/hallway.

Plus for larger units, people really don’t want to take an elevator or load into a cart, they want to drive up and unload.

Also, they have not explained to me what caused this issue in the first place other than saying the soil quality is probably bad.I am wondering if anyone out there has hired a structural or geotechnical engineer for a single family home and what their experience was.The property appears to be in an area that might have an elevated water table (not sure though), so from doing some googling, I am wondering if I need to install a sump pump and underground drainage in addition to fixing the current foundation issues.

Quote from @Greg Scott: Boom - Sound of an IRA blowing up.The IRS doesn't want you to be able to create a situation where you could shift taxable dollars to non-taxable dollars. the logic makes sense..even if no definitive code section or reg. addresses this scenario, I see the elevated risk level. 

Building systems include the heating, ventilation, and air conditioning (HVAC) systems; plumbing systems; electrical systems; escalators; elevators; fire protection, alarm, and security systems; gas distribution systems; and other systems identified in published guidance.) is a single unit of property.

Further, you can also place "reasonable" restrictions on the animals, including the requirement of a recent veterinarian report on the health and vaccine status, with annual updates; must be spayed or neutered unless contraindicated by veterinarian; must be in a carrier or on a leash (unless this prevents them performing their service or task) in common areas,especially elevators, stairways, and other areas where people would be in confined spaces; must clean up after the animal properly in common areas; offensive odors must not emanate from the residence; aggressive or nuisance behavior (such as extended periods of barking NOT related to the service or task they provide) can be prohibited, and potentially grounds for removing the animal and/or the resident; animal must have a chip or collar with owner's identifying/contact information; must have appropriate city/county license if required locally; and photos of the animal for your records.A thorough and clear policy will deter many of those that are less than sincere from applying when they are made aware of the policy details early in the process...like at the viewing, and mention of the policy in ads.