We are going to get the structural engineer inspection and decide our course of action based on what they say. 

I am based in Bloomington-Normal, IL, just two hours south of Chicago.

I even created my first LLC to start the fix and flip business, funding it with enough skin in the game, elsewhere hoping to use OPM rather than my own capital to fund these projects as it has been difficult finding a lender who is comfortable with loaning to me solely without an LLC.My goal has always been to match my W2 income and eventually double it and more so I can work as a hobby rather than relying on it to live.

So I believe it doesn't have anything to do with the quality of your rental, or how it will rent, just with the confidence of their predictions based on the data their system has. 

Perform your banking wherever is most convenient to you not based on where the bank's physical presence is located.

How much notice would you say is reasonable, considering they are kind people (despite being dirty and missing payment dates) and will have a hard time finding a place to bring their large dog.I'd given them written notice based on the rules for your area to get the process started (whether that's 30 days or some other number), and then tell them you'd be willing to work with them on the official move out date (within reason) if they need a bit more time to find a place so long as they are current on rent.

Based on the limited info you provided, it looks like there is roughly $180k in Gain. 

Especially with most units requiring 3 different paints/colors: walls, ceiling and base/trim/doors.

She's based out of New Hampshire and called it the "Alabama of the Northeast," but with way less social programs.

I'm not sure what market you are based out of but we do this in Columbus OHIO and florida markets.