However, with the current tenant situation I fear that by increasing the quality of the property right now may not get me the higher rents needed to justify until the tenant situation next door is resolved.

Anything you purchase here now will appreciate like crazy because of various economic drivers - population growth, job growth, and major companies moving and developing here like Intel, Meta, Google, Amazon, etc.

Note, I have 12-doors there and I help investors get started in Detroit so I'm biased.

Notice per law was posted on his door 7 days ago and it was photographed on his door after knocking per law. 

I currently own 4 doors here!

So while this doesn't directly address STRs and the idea is general housing density, I do see it opening more doors for STRs indirectly perhaps.Is this housing density ruling going to help STR investors overall?

IMHO its a all of the above times, post cards, door knocking, SMS, face book PPC and ads in marketplace... 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.

I own 4 doors in Columbus, Ohio and looking forward to growing my portfolio!

You are no more protected from a lawsuit with your proposed entity structure than the person who owns the building next door  who forms an entity in the state where the property is located.