Also I tried to find the IRS code 1031 section original text but couldn't.

A partner and I own a warehouse in a small market that we're interested in converting to self storage, but it's in a "mixed commercial/residential" zoning part of town, and the only zoning classifications that are permitted to build self storage per their code are the purely commercial zones.

IT is costing me about $24,000 to do this because I have to bring the electrical system in both apartments up to current code, plus buy new HVAC units and all new ductwork separating the units and water heaters. 

Greater than 4 housing units in a building classes it as commercial.Building codes are usually controlled at a county level and vary across our country.

Then search your zip code.

@Tarek Youssefhttps://www.citybigbearlake.com/index.php/city-departments/code-compliance

Most good contractors have experience in current building codes and have made adjustments with the current codes to keep their costs down.I speak from about 30 years of construction decisions in the Dallas Texas area. 

I was thinking something along the lines of a Ring system, coded entry knobs, and a few cameras up high on the corners of the building also.  

@Anne Marie Kodama - Anne if you planning to attend the Bay Area Summit on February 8 & 9 in Oakland, you can get $20 discount with the following discount code "johnson20".

This means, at a 3% commission side, you stand to get back 1.5% applied to your closing (not in cash - unless different in your state, it is a violation of IRS tax code if you receive cash for this type of transaction, unless your agent also sends you a 1099 to cover this extra income).Best of luck in your journey on the first one!