There is so many "red-flags" here I am not sure where to start..... - you state it's an "executive" townhouse.

Are there any hurdles I should anticipate with zoning or permits?

If property values are stable or increasing, your strategy might be solid.Exit Strategy Since you plan to refinance in 12-18 months, consider what happens if interest rates don't drop or if refinancing terms aren't favorable at that time.Questions you might want to askAre there any zoning or regulatory issues with converting or renting the units as mid-term rentals?

Quote from @George Red: Interesting, maybe a "payment holiday" on next year's taxes for the amount people have paid over what they would have otherwise been required to pay  with the errant assessments.

TIARV Park AND Self Storage~4 acres, commercial for $120K (google maps link)Pros: In city, city water & sewer nearby, city allows both rv park AND self storage in Commercial zone, ~$50K worth of timber on propertyCons: Neighbors nearby, traffic visibility not as good here, land needs to be logged/cleaned up - not a big deal reallySelf storage constructed probably out of shipping containers~3 acres, industrial for $135K (google maps link)Pros: clear flat land, higher traffic count between the coast and I5, seller will carry loanCons: zoning does not allow for RV Park, city services unavailable

Just zone in on a neighborhood you like and learn everything about it.

If you do research ahead of time, what are some red flags that would cause you to back out of a deal or add a couple thousand to the deal cost for legal battles/ cash for keys?

No one is missing opportunity with the land bank properties, it is just surrounded with red tape and corruption.

I had an applicant years ago that got a random $10K deposit and that was a red flag to me.

Just giving a quick prayer out to those who are living in the destruction zone for Helene and those that have properties in those areas.Post when you can so we know you are doing OK.