I envision my first purchase would be no more than a four unit dwelling.Because I want to preserve cash for value add improvements and reserves I want leverage financing as much as possible.

Prohibits an RGB from setting longevity rentincreases.Part D: Repeals High Rent Deregulation, which allows units to be removedfrom rent regulation upon vacancy after the rent achieves a high rentthreshold; and Repeals High Income Deregulation provisions, which allowsunits to be removed from rent regulation if a tenant's income is$200,000 or more for two consecutive years.Part E: Sets the Preferential Rent as the base rent for the duration ofa tenancy, but preserves regulatory agreements that allow for legal rentincreases.Part F: Allows HCR or a court of competent jurisdiction to look back at6 years of rent history when determining rent overcharges, or a longerlook back period if it is reasonably necessary to make a determination.Eliminates the ability of an owner to escape punitive damages where theovercharges were willful.Part G: Enacts the "Statewide Tenant Protection Act of 2019" to allowany city, town or village to opt-in to ETPA and provides the appointmentof the members of the new RGBs to be done by the opting-in munici-palities.Part H: Amends the maximum collectable rent increase formula thatapplies to Rent Control units to set annual increase at either an aver-age of the last five years of RGB increases, or 7.5%, whichever is less;and prohibits Fuel Pass-Along charges for rent-controlled tenants.Part I: Reforms the personal use exclusion to limit the number of unitsan owner can take out of rent regulation, and requires the use to be animmediate and compelling necessity for use as a primary residence.Part J: Ensures that units rented by nonprofits to provide housing tohomeless or previously homeless people revert to rent regulation at theend of the use by the nonprofit, and that the previously homeless personor persons are treated as tenants for purposes of the law.Part K: Major Capital Improvement (MCI) & Individual Apartment Improve-ment (IAI) Reforms*Limits approvals to work for essential building functions and otherimprovements (e.g, heat, plumbing, windows, roofing); exclude mainte-nance.

However, small multis--2 to 5 units--often have low cash-on-cash returns and it's thus all about capital preservation and paying down your debt over time.

Preserving a personal relationship with neighbors is important. 

Capital preservation is critical at this time in the market cycle.

There is a lot more to the LLC question - when to do it, how to do it, current mortgage, proper transfer to preserve title insurance chain, DOS, future financing, management, distribution of properties per entity, insurance, partners, etc. - stuff barely touched in current thread.Here is a diagram to help you on your quest: asspro-cya-diagram

In general, lower  cap rates are about value preservation, higher rates are about wealth creation.Take a look at this tool I found: https://mapping.cbre.com/maps/caprate/app/ Click around and select Multifamily and type.

If that is the case, then prepare a simple, short agreement between you and the mortgage holder that you are to inspect the vacant property, as their agent, and estimate the cost to preserve it.

Not sure if I should gut it all and redo every single aspect or try to preserve some.

At least then hopefully with flat rents if they decide to not renew the option period with rental increases then the area likely will have higher rents per ft by then to release to the second generational tenant thus preserving the investors initial investment and then some.