But we had four kids, a hubby who was a car guy and needed a shop or big garages, and a limited income.

There is a big tree there, limiting the width of the alley to about 8ish inches.

Limiting issues and liability is the goal.

I am only familiar with Texas and while there is sometimes limited flexibility it’s basically 100% due at sale.  

Most HMLs I work with for my CFO clients require $10k equity or (10% of the purchase price) as minimum equity while limiting the loan to 70%-75% of the ARV. depending on the lender.

While many of these issues are important considerations and should not be ignored or overlooked, there are other more crucial criteria that you must question and evaluate first.The critical risk criteria that you must review and evaluate prior to making your final decision on which 1031 Exchange Qualified Intermediary to retain includes, but is not limited to, the following areas:Technical capability of the 1031 Exchange Qualified IntermediaryInternal processes and audit controls to safeguard your 1031 Exchange funds and assetsUse of Qualified Trust Accounts or Qualified Escrow AccountsDecision criteria and guidelines for investment of your 1031 Exchange fundsProtection from potential errors or omissions by the Qualified Intermediary (E&O Insurance) Protection from potential theft or embezzlement of 1031 Exchange funds (Fidelity Bond) An experienced and professional 1031 Exchange Qualified Intermediary will understand these concerns and should be happy to discuss these crucial issues with you.

Small entrepreneurs should not diversify their limited resource if they want to grow.  

Are you setting a one person per room limit? 

Are there infrastructure limitations, i.e. main sewer can't support 100 new townhomes feeding into it?  

They can limit what property owners can do, including house hacking.Even if the city has no restrictions, if legally binding and properly recorded, covenants can enforce rules that supersede local ordinances for those living within the neighborhood.