Make sure you review each line item as change orders can get expensive.

That said, these days most good contractors are so busy you might be deep in line trying to get one to run a project. 

Is there any way to avoid paying capital gains tax if I eventually sell?

Or is it more due to the stereotypes around people on Section 8/the other tenants are paying a considerably lower amount every month?

They STR game can be very complicated in NE Florida due to zoning laws, imaginary lines between cities that are and are not incorporated and county rules.  

I understand when you sign an FHA loan you must state something on the lines that the house will not be registered under an LLC.

My insurance is more than double for what I pay for a SFH in the same area.

This could be useful information if you need to push back on this and you might want to consider floating some questions back to the landlord about the depreciated worth of the door and hint that you are not expecting to pay for a whole new door.  

Depending on how much money you're making (which, if you're at a loss, may not be a ton), those trusts can sometimes cause more tax than going the standard LLC route and just paying the $800 in the first place.I'm not sure from your post if you're talking about income taxes that are owed, or the $800 LLC fee, which is more akin to a franchise fee in the terminology that you're using. 

I would prefer a Line of Credit product here specifically if it were me but I would certainly lean on other investors in your area on who those lenders are that offer such a thing.