I admit that the allure of interest-only payment to drive insane profitability from cash flows is attractive; however, I don't see a standard process that the lender follows, but it may just be the affiliate/broker representing them who isn't very formal. 

The move is always whatever SAFELY leads to owning more assets.

As for the shed I was recommended to allocate it the same way split between the properties therefor making it fall under the De Minimis Safe Harbor amount of $2500 allowing me to expense the cost rather then carry it as an asset for depreciation.

Capital partner is a very safe way to go.

To make deals go through, you need to get along with buyers and understand what drives them.

I built half a dozen homes in Seaside Or on the hill above town and half way up my street was the start of the safe zone for Tsunami  when you put that into perspective..

If it was a licensed contractor, I would have expected the contractor to pay for damage they caused especially true if the contractor had verbalized that the tenant’s belongings were going to be safe where they were located.If a contractor believes the items are safe and likely has the best understanding of the work to perform, then why would the tenant believe otherwise?

This covered all sides.Just make sure that the final payment includes a standard lien waiver just to be on the safe side.There are platforms that manage this process as well, we used LevelSet.

With the leak, I'm sure they'd appreciate a safe, dry place to store them. 

I think some of your exit strategies could be to reposition and add some unique features to your rental to attract more renters and potentially drive a higher price, 1031 exchange and move it to a different area or even market.