If you provide a scope of what you are demo-ing, you may have better luck with someone's experience to comment here, but costs can vary regionally, so a local contractor would give you the best actual estimate. 

A lot of people are similar position - if you have a reason to use the cash, it may make sense to just cash out refinance.

Is there a legitimate reason for what the title company is doing?

Main reason for selling is she took a job at the coast.

Also, in general, any reason to subdivide prior to building other than the LLC piece?

Once the title is clear of those pesky old liens, you'll be good to go.This is not legal advice, so speak with your attorney for actual procedural issues.Keep investing and moving forward!

I grew up blue collar and my dad was a contractor, so I'm very much a DIY guy and think I can reasonably handle property management. 

If it is to play it safe and have a feel for the type of actual operating income that the property can produce before you put debt on it, that's a safe and solid idea.The good news, however, is that you're likely going to be purchasing a furnished property.

Although it seems like an option worth exploring, I don't see any deals that seem reasonable.

I'm skeptical or is this reasonable?