There seems to be a common theme in any industry where experience is required but no one wants to give you a shot to get that initial experience.

Sometimes it’s better to go slow and make sure you have the “mental space and capacity” to take on the next phase.

Also the house has a crawl space so the likelihood of a catastrophic flooding event is very implausible.Rental 2 2-1 bathPurchase price: 130,000.00 approximate value now 170,000.00Down Payment: 26,000.00 (20%)Interest Rate: 4.1% 30y/fixedCurrent balance: 99,600.00Current Tax: 2,482.00/yearInsurance: 750.00/yearUtilities: garbage 40.00/month renter pays all other utilitiesCurrent Mortgage w/escrow: 828.23/month 9,938.76/yearRental Income: 1,225.00/month 14,700.00/yearProfit 356.77/month 4,281.24/yearFor anyone willing to take the time to look at my situation I am looking for input on my next move.

Potential problems with a pet supply/grooming tenant who takes the whole space and pays for everything! 

It's an exercise to think about how to intentionally design those spaces to imagine what they'd be used for ... while keeping flexibility in case I'm wrong.My interest is certainly in the same ballpark as you - namely, building communities and not just private spaces for people to live. 

The C and D spaces are experiencing lower collection rates compared to A and B. 

Add livable space in basement

Most tenants like the space where the dishwashers are removed and they could care less about the disposers because they stink and there is a lot of food they cannot grind in them, anyway.

Although this is a sellers market for the owner-occupier space with crazy offers being made above asking price by people who buy on emotion rather than numbers, landlord burnout is at an all-time high due to government imposing its will and saying investors need to pay for the "won't work for money and won't pay for housing" lifestyle. 

The only alternative I can think of is considering turning the garage into living space, but that would involve a significant change to the property that might not come back to you dollar-for-dollar.