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

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

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

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

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

Any tips on balancing renovation costs with tenant expectations when preparing a property for midterm stays?

@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?

The justification for eminent domain would be the cost of defending the current set up, health costs and environmental cleanup costs. 

I have found that they worked really well when it comes to getting better tenants and better rents, and having less hassle, less headaches, and then getting a higher sales price; without paying closing costs or realtor fees.

You can expect turnover costs, losses due to vacancies, and other expenses.