In addition, I included my plan strategy in the attachments.

The other way is using the short term rental loophole but you have to be the person spending the most time in managing the asset which may not be worth it for you. 

Even if the intent is to convert this into a rental upon grandma's passing, you still would like the step-up in basis unless you plan of lifetime of 1031 / 721 exchanges.

My suggestion to any one that are first time real estate investor in fix & flip, or planning to hold property for rentals, is to learn or read, understand about real estate financing first, build your assets and network or partner withsome has completed some projects in fix & flip and has some rental properties with positive cash flow within your immediate area before dving in to any project by youyrself.

And you're definitely on the right track in planning for upscale decor and amenities.

I still plan on paying the monthly HOA required payment but I am not intending to pay thousands I had no decision-making power on.

I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

You can spend a lot of time worrying 'what if'. 

I plan to use most of my own money, just wanted some extra capital incase I needed it to make the numbers work.

If you were to spend the next 10 years of your life sacrificing lots in order to gain knowledge of particular industry (Industrial or Multifamily) which would you rather know when all is said and done and you were to try and retire with this knowledge.