Or maybe it doesn't meet the 50% rule, but is fair enough in the other guidelines that overall the deal is good, and so on.With only what we know discussed here, if I were in your shoes, I would probably look toward a good 3-4plex and do owner occupied FHA financing. 

Absolutely consider the best use of your $450 - fancy blinds will probably not allow you to charge more for the unit, but appliances, window A/C, extra storage, etc. will.

Finding a commercial broker that handles self storage should be helpful.

Looking for advice for those who own self-storage facilities.

Nothing like arguing about if an old farmhouse with holes in the floors, no water or electric is a habitable structure, storage, or just a pile of rotting lumber.

If I were in their shoes, I would list a renovated house at $125k max.

I don't think you could have asked for anything better than this.At least those would be my thoughts if I were in your shoes trying to go full time......Its an absolute home run!

Possibly be converted for storage or a small rec room ( not sure if it's really worth it.)Both Have a separate electrical and gas meters but would share one water heater.

@Nicolas Vautier If I were in your shoes ....

You have to put yourself in the seller/lenders shoes.