Dogs seem to be able to correct interpret human emotional cues better than wolves, so perhaps your research should start from there.
There is nothing insane in saying empaths exist, as dogs can easily experience the emotions of humans near them.
The crazy begins when you say that they can get the emotions of the persona's downstairs, through walls and floors. Such a thing may be possible, but I'd say 90% of these claims are done by disregarding the scientific method.
If it is possible, maybe it has to do with the magnetic fields emitted by the brain.