My research guided me to form an LLC to hold the properties during repair/rehab (I am buying properties that need major fixing) and move them to another LLC where I will be collecting rent. 

Most of what they recommend only makes sense from an operational standpoint if you are a larger investor and have a team to help you manage everything.Also, ensure your REI-savvy tax pro and your REI-savvy attorney link up during the entity structure creation process so things are optimal on all sides.Just something to keep in mind as you're beginning this journey.

There are other towns with much less city intervention and will have much higher chances of collecting higher rents. 

The only thing a tenant does it prove the rent you can collect as opposed to a proforma of suggested rent.

For that tenant, only used it for rent collection. 

@Morgan Reynolds Did you ever get your pitch book built or collect any examples?

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I have been deliberately managing it as a rental (ie, contract, collecting rent, etc.). 

If you do take on new debt or collections during this time, the lender will see and it will require that it be accounted for in your DTI (unless this is a DSCR loan). 

Property Management Dashboard: Allows me to summarize delinquencies, notable expenses, upcoming lease expirations and rent bumps and send a monthly email automatically to the property manager for a status update.Everything I've found is either focused on the property management and rent collection or on managing investors.