So I figure, if it makes $400 more per month, I'm looking at 4 year payback on the renovations with the risk of some other repairs down the road, such as furnace.

Quote from @Michell Chase: I am working with a hard lender on a purchase/reno and they require a builders risk policy even though 1 unit of the 3/4 will have a tenant.  

With these declining commercial spaces, these communities could be at risk for blight.If you look around, you will see new retail spaces.

I would invest in Sunrise Capital, but I didn't get the impression that they would accept $50K as an initial investment, which I always like to do to try out a new firm (for me) and to diversify geography and risk.

Whether the lender decides to do anything, and exactly what they decide to do depends on the lenders particular strategy, target ROI, risk tolerance, current interest rates, interest rate of subject mortgage loan, etc. 

This risk here far outweighs any small gains in ranking. 

Can you articulate the risks you believe you will  protect against and more importantly how this Wyoming LLC will aid in your objective?  

We decided the cost was too high and it was not worth it from a financial or risk perspective.  

On the other hand, a detailed quote with a higher total may offer more transparency and reduce the risk of surprises as the project progresses.I specialize in consulting services for situations like this, where I help clients evaluate contractor quotes, ensure transparency, and navigate the renovation process with confidence.

Because, the lender is entitled to know what risk they are taking with their money.That being said, on seller financing, if someone gets sued and loses, the lien/judgement can be filed at the county, (it's not automatic, someone has to prepare and send the paperwork) which the bureaus will pick it up on producing a credit report.