Direct expenses are expenses directly attributable to the rental units (ex: rental unit repairs/cleaning, advertising, rental adm exp, etc)

I ended up hiring an architect for floor plans and to deal with the city.

What are the cleaning and management costs? 

Most of the time is spent answering guest inquiries, scheduling cleanings, and handling the occasional issue that pops up.

I dont see the floor plan but maybe if you turned a bedroom into 2 bathrooms and connected them to the adjacent units that could work very well.

We just discovered a crack in the concrete slab foundation that is a borderline major problem:- It is a vertical crack about 1/8 inch wide that is at least 9ft long, which is causing a 3/4 inch drop in the flooring and some evidence of old (luckily) limited moisture and termite intrusion. - BUT, it also appears old and probably a symptom of the original house settling.

Toilet is held by 2 bolts and nuts and any skilled person can replace it in 10 minutes unless it has cast iron waste line or an uneven floor.

Block construction cement floors with the floors sloping to a central drain. concrete counter tops stainless kitchen cabinets boob lights and minimum windows by code .

If you flip your flooring upgrades and appliances will probably need to be of higher quality vs a rental.

•Target a property in the $800K–$1M range to maximize leverage while keeping costs manageable.2.Open a Second LLC:•Create a new LLC for this property acquisition to separate liabilities and maintain a clean structure.3.Assign Funds & Organize Finances:•Allocate funds to property improvements, marketing for new deals, and reserves for emergencies.