I typically build in an inspection contingency into my offers (yes this reduces my competitiveness of my offers, but its also a safety net to protect my bottom line).

As you probably know commercial lending on CRE is not the easiest task right now, then add all the complications to it...foreign buyer, new LLC, new bank accounts, etc and that probably cuts out a lot of lenders who will be interested.Also find out what their goals are to determine if what they want is even feasible. 

You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

Would rather have these renters than my buddy’s who used a chainsaw to cut the sink out when they left.  

While I don't think there's going to be a crash, I do think we'll see a reversion to mean in which a lot of the aggressive investors on the bleeding edge of the risk frontier get smashed.  

With short term rentals, you tend to take a larger cut as there are many things involved in the day to day upkeep, think 12-25%.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

This is a great place to invest for safety and appreciation.

It’s flexible and can help you fund deals quickly.Lease Options: Similar to “rent-to-own,” you control a property with minimal upfront costs and can potentially get a cut of the appreciation if you decide to buy it later.Lines of Credit: If you already own a property with equity, a HELOC or business line of credit can give you accessible funds for down payments or renovation costs.House Hacking: This might sound basic, but if you haven’t tried it, it can be a fast track to building up rental income and experience without a ton of cash down.

The brick construction is a plus for durability, but check for any signs of foundation issues, especially if the property has settled over the years.Be sure to budget for updates to key systems—plumbing and electrical upgrades can be pricey but crucial for tenant safety and modern functionality.