And to bring two parties together for compensation a real estate license is required. 

The tenants are willing to offer last months rent as well at move-in as an added incentive to compensate for their particular situation.

its not my logic someone who closes on a property before reselling is known as an investor.. and or rehabber or investor flipper.assigning contracts is bringing two parties together for compensation ( definition of activity that necessitates a license in most jurisdictions including CA .)  

It seems to me that the BRRRR strategy is most effective when done many times where the cash flow is so great that it compensates for the balloon loan.

do i have to wait for insurance compensation process done?

I'm reviewing their management agreement and came upon:Is this a typical compensation clause that most Management/Broker companies include in their agreements?  

-I could offer him something like a 60/40 split to compensate but that would make some of the bookkeeping tricky.

I don't think the market compensates you enough for "newness" vs. the extra cost and complexity of building.There was a good article on Bloomberg about this last year that's worth reading to get a sense of the bigger economic forces/trends involved in this, America Needs Small Apartment Buildings.

You can get compensated in CA if you have this type of roof but not sure about NJ.  

You'll want a good cash on cash return to compensate for that money being temporarily pulled from the market.