If I am going to sell it, I will repair or replace the dry rots, paint exterior, and repair the roof.

Bad part: you can never deduct the cost of the rehab itself, whether it was $20k or $200k.

Replacing old or worn-out flooring with modern, durable options like hardwood, laminate, or high-quality tile can make a big difference.

I am thinking about exchanging into another CA property for now (and avoiding the cap gain taxes of upcoming sale), and then a year or two later I'd sell that property and then deploy that money out of state. 

Don't just cave right away or they will know that they own you....

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

The safest bet is to try to get a variance from Union City. though clever, your combined unit lease agreement would likely cause trouble if ever scrutinized by the Tenants or the municipality. 

I’m open to any advice or suggestions on how to make the most of it.

Has anyone had experience with purchasing or considered purchasing a building with a sinking foundation?

Hope to see you posting questions or successes on the forums.