Typically I see it on anything over 5 acres. 

One thing I am curious of - typically many of the hard money lenders will charge a 1-3 year pre-payment penalty in these types of scenarios unless your client paid points to not have that pre-payment penalty.

If the LLC and its income are entirely outside California, it typically does not require registration with the California Secretary of State (SOS) or payment of California Franchise Tax Board (FTB) fees, even if you reside in California.

The only difference is the seller remains on title until we have enough equity to refinance or sell.3: Typically we don’t agree to balloons.

Holding company typically if you have multiple companies like a property manager, own property and other businesses. you will end up spending more per year on accounting and state stuff than what you make on your rentals. 

In that case, you’d typically need to file a legal challenge, which could involve going to court and showing that the restriction is unnecessary or unreasonable.The best advice I can give would be to consult a real estate attorney to understand your specific situation and options.

While they typically have considerable deferred maintenance, we're getting great terms.

If you elect to use a VA loan, that typically means you don't plan to put any money down.

Consult you insurance broker for specifics but I found this policy to be very protective and reasonably priced.With regards to an umbrella policy they are typically good to have.  

Since new builds require upfront capital, you might not see immediate returns, but lower maintenance costs and higher rents typically make up for it long term.If you're serious about scaling with BTR, make sure you connect with experienced builders, property managers, and lenders who understand the strategy.