I don't believe the tear-down costs would be added to the owner's property tax bill when there is a condemnation.

Depending on your tax returns, that might be an option.

However, if you can flip it and make a solid profit higher than what you would get out of a cash out refi and/or rents won't cash flow, then flipping makes good sense (unless you need a tax write off but since this is your first investment, that probably isn't the case).  

Hallway utilities are around $25 a month and tax deductible meaning net cost around $17.50. 

Whoever taught you that I would go to them and do what they did as this setup for an ownership structure in my opinion is far to complex and your CPA is going to be scratching there head at end of year with all the tax stuff they will have to do and how you have to keep bank accounts for each entity and move money form one to the other to the other....

Taking bonus depreciation early is a tax deferral, not a tax savings.Recapture is real and debt must be repaid!

So we went directly to Lowe’s, who provided a receipt for microwave, installation, taxes, etc. totaling about $530.

Paying very low property taxes.

Opportunity Zones are designated distressed areas where long-term investment and development are encouraged.3 Reasons Why You Should Invest in Opportunity ZonesDefer or Eliminate Capital Gains Tax ObligationsWhen investing in Opportunity Zones through a Qualified Opportunity Fund (QOF), you have the potential to defer your capital gains taxes.

I do have a zero-leverage option which is taking out retirement funds early and $30k is tolerable for me.I assume you know but you will pay a 10% early withdrawal AND pay ordinary income tax on that 30k.