Focus on key areas first (like floors, walls, kitchen, or bathroom), which may help you handle the costs more gradually, even if it means moving in furniture or updating fixtures down the line.Also, since the tenant left it in rough shape, be sure to document all the damage (photos, receipts) in case you decide to pursue reimbursement through their security deposit or in court.

@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?

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

They are a bit undersized but perfectly suitable for 1 bedroom apartments and the slight increase in costs is far less than the costs associated with venting the units properly.

Even if I were found guilty, the cost would be in the thousands, not in the millions.

In reality it is costing you more. 

Attorneys  dont cost, they pay. 

Agents are also advising you to look for expensive mistakes (like checking the sewer which could cost 5-40k) and using their network and contacts to find homes off market or FSBO.  

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

You can start to educate yourself on the individual components; how much does it cost to paint on a per sqft basis or what is an average kitchen remodel.