I'm a contractor based in Maryland and DC, so the renovation aspect is well within my expertise, having done numerous projects for other developers and general contractors.However, I'm facing a challenge when it comes to choosing the interior design elements, such as bathroom tiles, colors, sizes, fixtures, etc.

It’s crucial to have local market knowledge or work with someone who does.

I'd weigh lightly on the 'trust' aspect.  

That’s a necessary tool that has some different aspects to it that allows you to see the WHOLE picture.

If you are financing yourself or using a loan- it is crucial that you complete the project in a timely manner.

There is a time freedom aspect that is a huge plus and once you get your business going you can have more time freedom that will be about 5 years in if all goes well.

For this protection to be effective, it’s crucial to keep your finances entirely separate from the LLC’s finances.

While you did point out the negative aspects of a deal like this, you didn't really highlight the pros on the RE side and future investment, appreciation etc.I’ve done two of these projects in the past 3 years in SoCal.

The construction aspect of it, which many banks have swayed away from is the main piece you're going to be looking to find. 

Establishing a good local team will be crucial for you.