But my solution in your case would be to frame out a dividing wall of 2x4s and either drywall or if the basement is prone to taking on water then I’d look for something waterproof as opposed to the drywall.

You need the right solution for your day to day operations.Your need is to make the management side easy, so that you can analysis your accounting, business and management all with only one entry.

Bridge Loan with Refinancing Exit: A bridge loan could provide a short-term solution to pull the cash you need now, especially if you’ve already added value through your rehab.

You may have to search a bit for the right contractor or engineer - sometimes I see one solution dominating in an area - "that is how we always do it" 

Working with the city to find a solution.

For crying out loud, in what universe is the solution to a problem: “𝗗𝗼 𝗺𝗼𝗿𝗲 𝗼𝗳 𝘄𝗵𝗮𝘁 𝗶𝘀𝗻’𝘁 𝘄𝗼𝗿𝗸𝗶𝗻𝗴, 𝘁𝗼 𝗺𝗮𝗸𝗲 𝘄𝗵𝗮𝘁 𝗶𝘀𝗻’𝘁 𝘄𝗼𝗿𝗸𝗶𝗻𝗴, 𝘄𝗼𝗿𝗸”?!

That doesn't mean you have to file bankruptcy, but you do need to know there are better solutions than Subject To when in foreclosure.If you sign a deed in lieu, that means you will no longer own the property and will probably never be able to buy it.

What were your solutions, and how did they work out?

My humble advice to anyone attempting to do creative finance is:Creative finance is for experienced investors who have access to capital if anything goes wrong.Learn the lawsDon't use a contract "off the internet", laws vary by state and are also regulated on a federal levelLearn the financing techniques correctlyDon’t skip parts of the processDon’t ever do a “kitchen table” closingUse the proper deedAn attorney can help you with the legal work, but the rest you are on your ownYour guru will not bail you out“Investing” in someone else’s deal by providing a small 2nd loan so the “investor” can pay for “cash to the seller” and for “closing costs” so he can do the deal is a very bad planKnow what problems can ariseLearn the responses and solutions to problems before they are neededKnow everything there is to know about Title and what that meansKnow who a "protected class" individual isLearn the "back doors"Learn human natureUnderstand timelinesUnderstand regulation enforcement (some of these "mistakes" have a 10 year statue of limitations ( they can charge you 10 years AFTER you do the transaction) and carry hefty fines and possible imprisonmentThe court doesn't accept "I didn't know" for an answer"Know that the source of the lead plays a serious role in some states and federallyKnow how much of a "profit" pushes the boundaries to invite an investigationYou can be sued by the seller if you don’t do things correctlyYou are automatically at fault if an investigator or attorney or regulator gets involved.

Can anyone recommend good companies to root cause  and implement solution to fix this issue?