I think you can resolve this issue by digging beneath the frost line in 4 places beneath the basement floor or crawl depending on which one you have.

Depending on these regulations, you might need to maintain a means of exit from the basement unit, such as a separate entrance to the outside, or ensure that the stairs remain accessible but secure.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

You could then get a HELOC/LOC on that paid of property (a product that doesn't require you to use it) and then if you did have a big emergency you had a line to use on it.Now, ALL of this is dependent on how much money you have in the bank, how many properties you have, what your income will be like in retirement, what the standard age would be for your end of life (that's a scary one to think about), and while yes, you can certainly take equity out I just think it would be good to sit down with a financial planner...or even some other investors that are local to you that are around your age demographic and see what they are doing.I'm glad you are thinking about this for sure.  

Quote from @Maria Eloisa Panciles: It depends on what kind of loan you are aiming for.

It's going to depend on the property and the STR and MTR demand.

Sellers looking to offload such homes quickly will likely receive lower offers, translating to less cash in their pockets.

The cost of a quiet title action is between $1200-$1500 depending on which attorney you use.

A lot to me would depend on who had pets, the previous tenant ?

You can build in sound proofing, but honestly I'd go with 2-3 floors for each so you don't have the tenant downstairs complaining about the one upstairs walking around at night.For costs-it could be more or less than new retail-depends on finishes of each.