I would consider something which negative cash slightly negate, that is cash flow after conservatively accounting for expenses is negative with but under the principal paydown in month one, but it would require the ability to do forced appreciation.When I am making comparisons against other investments I assume 3% appreciation (which about matches inflation).

(a 5.0% increase), from $Y per month to $Z per month, effective September 1, 2024.An additional $X deposit is also required to bring your security deposit equal to your new monthly rent.

You picked the wrong kind of property to start in as a 3/3.1 townhouse is not ideal for room hacking and is more residential in nature which is why you should sell it and take the proceeds and deposit money and look for a two-family where you and your brother can live in one side and you can full rent the other side - maybe even as a mid-term rental to 2x the rent.

Have the tenant use ACH or Zelle for deposits. 

So is forming an LLC and getting an EIN to set up a business checking account to receive the security deposit and collect rent payments a good idea?

The number of bedrooms for STR has to match the number of bedrooms cited in the septic permit, so you are seeing homes with 7 BR now have a 10 person STR occupancy limit and some homes that had bedrooms added without permits now being restricted. 

Flooring can be a basic vinyl or even a DIY job using peel & stick flooring.Expensive materials is more risk for the landlord because when they get damaged there is more likelihood you will lose money on the deal because collecting damages exceeding deposits if difficult.

They would pay all utilities and maintenance on the property and provide 2 months security deposit. 

My PM charges a pet fee that they keep, but they also guarantee if the pet causes damage (and the deposit doesn't cover it), that they will fix it. 

Black cabinet hardware and changing to a black sink to match the other appliances would look nice though and wouldn't cost much