Finally, my big concern was always defaults and income loss...if I have more than 6 defaults (which I am sure I will), or more importantly, I lose my income...I do not want to be stuck with a high-interest LOC (hence why I started with $5,500 and not 10k).

I would need to know more specs on the house but with material shortages It's difficult to say how much to budget. 80K-120K for full gut perhaps but unsure with lumber beings so expensive and shortages.I would plan 9 months of vacancy between the pain you will endure pulling permits & having your contractors show up everyday to complete the work & then final inspections to get a CO. 

The permitting process is expected to take a few months to finalize.

I used some photos with a similar aesthetic but made it very clear these are not the final photos.

The property passed final testing by the county health department.Is this anything I should be concerned about?

It is a bizarre choice for a "headline" photo.3) Kitchen seems to be galley, hard to shoot, but you should consider a result that does not portray a cramped space - which is what I get looking at these.4) wide angle.

I kept the house for 5 years and finally called and requested the Chief Building Inpector.

As you mentioned, it might be difficult timing the sales of each of properties where you can achieve a combined exchange (multiple properties into 1 property / or a few properties).Just a quick note that may be helpful - I work with a group of investors that can help with a combined exchange into a single property and will buy it back once you've found a replacement propertie(s) as the final destination for your capital.

It took 3 years, but,  I finally navigated the permitting process and now have all the permits I need to build 6 small cabins on a river in the mountains.

I dont know how many units you are talking about, my biggest problem was tenants having easy access to me.I finally decided to use a software and got an internal property manager so moved away from it.Currently setting up the maintenance request portion of it, so will see how it goes.