And What other conditions/terms/costs do you calculate when underwriting the potential of a deal?

You'll likely also reduce your cost of living by moving to a stabilized apartment.Depending on the cashflow and debt paydown, you can use this strategy until you've built enough equity to reinvest.On the other hand, getting into a multi-family after refinancing will also help you build substantial equity to rinse and repeat in the coming years.

This plan also offers many integrations (at an additional cost) depending on what your needs may be.

It is going to cost more than you expect, and you'll have that "Oh, crap!

What are you hoping to get out of the extra time, work and costs of having the LLC?

@Shayan SameerThe non-paying tenant could impact your short-term cash flow, so consider the potential costs and timeline of eviction in your state.

I also suspect inflation will drive continued migration to lower cost of living / lower tax states.  

The total cost including construction and permits (but excluding the land) comes to about $2.14 million.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

Renovations can cost more than you expect, add 10% to your overall number.