It’s a different beast than residential but fortune favors the bold.

You can go portfolio with an LLC, but rates won’t be as favorable.

Numbers look really favorable based on your calculations! 

Sounds like she knows how the system works in her favor as a tenant and will take advantage of you as much as she can..

I then filed a motion to substitute party so I could collect from the tenant.

Read Every-Landlords-Property-Protection-Guide before deciding for more advanced asset protection structures.With an LLC you'll likely have to get a commercial loan - meaning you'll loose one of the main advantages of house hacking, the very favorable financing options in personal name.

I will certainly get that put in motion.

If you are acquiring this property with a 0% down purchase money mortgage with favorable terms and creating a huge equity position, this may be the deal of a lifetime...likewise, if this is a 12m property you are buying at 10% of value...this is the deal of a lifetime...we can go on with scenarios for days...you've got to start looking at this through a different lens before you rule it out. 

So long as the property isn't chemically contaminated, they'll take the house and just knock it over.2) They buy 50 properties sight unseen, knowing that a handful will be absolute disasters, but the law of large numbers are in their favor that the ones that's aren't terrible can be purchased cheap enough to where it doesn't matter.3) They have a rehab crew / contractor and they just need a junker property to keep them busy on days when they aren't working on another major project.  

There are also other sellers in different situations that work in your favor.