Because they are out of compliance with zoning, it seems that there could be some exposure to city violations, etc.One solution is to incorporate the garden into the 1st floor unit as an apartment with a basement.  

OK Daniel, airbnb has also a solution for you.

My solution: I called over 20 banks and talked to a loan officer/vice president, or both, at every single one until I convinced one to give us the loan.

Therefore my paycheck isn't tied to the solution you choose.If you were my client I would just want to run the math through with you on the SDIRA in lieu of LTC scenario.

ALL family members (owners) who have spoken to tenant have either been argued with or have been hung up on.As this is a family owned business, I am merely handling this case but need to come up with a solution that all family members involved will agree to.

@Mike R. is right, that is the fastest and usually the cheapest solution.

He came back with nothing, as he did not see any sign of leak ( no peeling of wall paint).Solution: Tomorrow, I am planning to inspect myself and try to find root cause of the problem.

@Chad Rupp, have you found any solution to your situation? 

In the short term I'm working to increase my knowledge about real estate investing and the markets I want to invest in, create opportunities for capital, and monitor for deals. 

If you want them to visit the house regularly to monitor it, no.You need a Property Manager.