On a 320k property Ill be paying 9k annually. 

It also covers your legal fees simply to defend a bogus lawsuit. 1 million is standard for each of my properties.

It's a great returning property. 

My budget for the first property is $50k ~ $100k.

You're so excited you won and you go drive the property. 

Doing two properties?

The city wants to tear the property and surrounding properties down Zillow said it’s worth 38000The city offer me 13000.I could use some adviceHard to give advice with limited information, but as a general rule, the longer you wait and the further down the line their project is the more valuable your property will be to them.Zillow (and all automatic online) estimates are very unreliable, so don't base on that.

I personally would put my properties in a LLC. 

Both of our properties have about 100k in equity in them so we were thinking about using getting a HELOC on the duplex rental property and use that money for the down payment on the next property.

If you want to do MTR, that gives you a shot at increasing your rents and supporting ownership of a higher priced property.