With some additions, this would qualify for the OMG category, but I think they didn't have that category back then when it was on the market.

I will probably do lots of rehab myself because of my background and then scale up as I am more able to afford qualified contractors.

An LLC is potentially one minor factor that might contribute to the evidence that you are running your rental activity as a trade or business, but it's definitely not required that you have an LLC to qualify.

My suggestions would be in this order:(a) Determine the type of financing you qualify for - this will short cut the process considerably and save time on investment angles and next steps.

If the ARV has risen to $260k and you’re renting it out for $2900/month, you can likely qualify for a higher loan amount.Here are some key points to consider:Loan-to-Value (LTV): A typical DSCR refinance will allow you to borrow up to 75-80% of the property’s ARV, so for a $260k property, you might qualify for a loan of $195k to $208k, which could help pull out most or all of your original investment.Debt Service Coverage Ratio (DSCR): Since you're renting for $2900/month, the loan payment will need to be covered comfortably by that rent.

If the use of the funds are for business purposes, like investing in real-estate, you will have an easier chance of qualifying for a loan documentation and income wise.

There is very little profit when undertaking $45K renovation projects therefore most qualified contractors will pass on those bid opportunities. 

. $50k sounds like a lot to you but with the price of materials and of qualified labor, it does not go too far.

I have not thought of using DTI instead of 3x the monthly rental amount in order to qualify an applicants income, but you made a great point regarding the priority that tenants might give a car payment.

They don't have to manage the property for you, but they can assist with getting a qualified Tenant in place.