Our issue is going to litigation.

The cost of renewing an LLC or changing the title is absurdly cheap unless you have one of those law firms that advertise a lot and have a huge advertising department and claim to have a secret sauce that guarantees protection. 

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.

I expect you will need a permit and not be issued one. 

The final straw was when my property went into abatement after an inspection, due to the property management company's failure to address tenant requests for the exact items that caused the issue.

Unfortunately, several issues arose during the renovation: 1.

I think issues regarding this can be avoided mostly just by tenant screening.

You need to think about not just the potential income but also the potential problems such as city ordinances, state law, insurance, potential eviction issues, etc.

A lot of this process depends on your laws regarding STR and Mid term leases/occupancy?

Know and obey the law.