I have proposed buyout terms below, but interested in any feedback, alternative deal structures, etc..

Alternatively, there are properties around the Ohio State University for example that are a less risky   investment but also have a lower return.

However, if you are doing anything "active" such as flipping or wholesaling, you want to do S-corp (alternatively you can file your LLC to have S-corp tax treatment) because you don't want to have to pay self employment tax on all the profit.

Have you considered painted bead board as a cheap alternative for a back splash? 

So you wouldn't want to put down a new asphalt driveway and then have the drywall truck leave divots in it.

@Joel Duguay - As already stated, the tax implications should be a non-issue on the sale of your primary residence.As an alternative to selling, you could also pull out a ton of equity with a HELOC and potentially have your cake and eat it too.  

It will provide you asset protection if whatever the company does that provides the service we’re to get sued they don’t have that commercial property asset.As it relates to value of the property or refinancing it won’t make a difference because you will have to disclose to the bank you own both entities and they will look at both and you personally to see if you can afford it, if it were to fail there is a good chance they would go after both then you since the one renting will be in default to your entity that owns it and if they default….So unless you need it to separate the two businesses for protection from whatever that other business does, it may not be worth it.For example others that do this are Walmart shipping trucks are not owned by Walmart they run them under other entities….

Truck , plow , snowblower costs about $70K .

Run your business using the principles ascribed on BP and, if ish hits the fan, have alternate means to weather the storm. 

This is why I highly recommend shopping for Realtors that can embrace the "new way of working" and offer alternatives that can set them apart from the rest while meeting the increasing demand from millennials (largest buying segment in the US).