All the more power to you if you figured out a way to solve for it. 

The registered agent generally is just for notice purposes and the manager and/or member will have powers in the LLC, which are the roles that matter much more so.

But also look at your cost base on the property.

I'm comfortable with all of those, but I know that there is so much more than goes into your return than just those three main levers.Specifically, I'm getting hung up on 1) financing, 2) closing costs on both ends, and 3) holding costs

Avoid and report him at all costs.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

Even with that being said, your holding cost is still positive on the second one. 27k of appreciation at 3% annualized. would cost you 4800 to get that not including loan paydown or the tax benefits of holding it at a loss each month. 

I am weighing different strategies in the Chattanooga area and wanted to gain more insight into new construction cost structure in the region. 

Also the work could end up costing me a lot more than 25K.  

Ive only handled SFH and small multi-family rehabs, but never dealt with anything on this scale, and have no idea about the associated costs.