Although, my company would be LISTED in the foreclosure, there would be no negative impact on me other than possible rumors about me being in dire straits.#3.  

How did you finance this deal?

Don't be so quick to indebt your paid off townhome until your learn creative financing and review all your options.

Finding motivated sellers off market and making offers using creative finance strategy.

I know that this is a big risk property but I believe that it has the potential for high return if I can get all of this permitting and renovation work figured out on the front end.I'm just looking for any advice on how to cover myself on the front end prior to making an offer and how to expedite the work so that I can get renters in and start recouping on the investment as soon as possible.

.: Quote from @JD Martin: I can't possibly imagine what kind of townhouse could be worth all of that aggravation and cost.

I want to put the smallest possible down payment down with an FHA loan on a multi unit.

You make $10k from STR, you have to come up with $22k out of your pocket, not to mention the upfront $100k down payment and possibly another $20k to furnish the house unless you bought it as an existing STR.So in summary, in today's market, it's impossible to buy a STR and be a passive owner and still make enough profit to cover your mortgage payment. 

How did you finance this deal?

But it is very much applicable to single family rental and residential units simply by getting bridge financing and a post transfer cash out refi.