.)-- Interest Reserve TBD-- 500 Appraisal (est)-- Builders Risk Insurance Policy TBDTotal Cash to close: 29172 + 6 months payments (not in escrow but demonstrated)You will likely need to wait 6 months to refinance.

*(If the LLC distributes K-1s to the managers, this confirms my assumption).

Is the next step to fill out the Request for Tenancy Approval form, have the tenant confirm their agreement, and then send it to the Public Housing Authority to schedule an inspection?

I've gotten a few good deals by confirming the additional beds/baths are not permitted as I buy it at what's actually permitted and go through the hassle of getting the rest permitted myself.

When any calculator or spreadsheet is oriented toward only one outcome (rental for instance) you have what is called "confirmation bias".

To @Bryant Brislin point as well - you probably don't want to start anything without first confirming that this spot would be feasible for a national chain, or at least a local chain/restaurant that would be interested in the space. 

The borrower / partner should have assets to show  (25% down payment + closing costs+ reserves)5.

There are also grant programs for 2 units that have NO PMI and don't require 6 months of reserves.

If your reserves and your CapEx are the same, do you also keep those funds separate from your 'business' account?

You can't buy much with $50,000 and I really hope you understand the importance of keeping some of that in reserve.