sill trying to figure out exactly what it is you wish to do by your post. 

@Jay Hinrichs, exactly, it's far more likely the judgment will be required to be paid, so far more the suffering party, the prior landlord will get paid in the future instead of lenders (i.e. some portfolio &  private lenders) who may not make it a requirement to fund the loan.No matter what, its like attaching a Low Jack that flashes like a Neon Sign when someone pulls a report that says..."

I pluck homes from greater Lufkin / Nacogdoches area yearly - for the exact reason you mentioned. 

Details: Built 1947, ARV 210K, 1050 Sqft.I know it's best to get a contractor to get an exact estimate.

This is exactly why I reached out to BP, for words of wisdom!

Should I create the LLC and use the Tax ID to open the bank account or just open it under my name for the purpose of the property?

@Bret Rankin What do you mean exactly by "I actually have to end the lease of a tenant..."?

An idea I had, following on Rayland's (Seattle)'s idea was to sell the project, with approved plans ready to pull for construction for maybe $50k over cost, and ask for a % at the backend, with the understanding that I would stay engaged in the entire process for learning purposes, while minimizing risk during construction phase.

There is a lot of real estate around here due to the high military population, and new homes coming up all the time, for the exact same reason. 

Total cash in hand is 190-195k or almost exactly 20%.