The Cali shift partly translates to lower income leaving and higher incomes replacing them.

I love the fact that online acquaintances often translate into real frienships. 

I am guessing that they will suggest that you require the Tenant to have:- General Liability (1,000,000/occurance)- Umbrella Liability ($1mm or more)- Professional Liabiity ($1mm or more)- Tenants Legal Liability ($500,000 or $1mm)-  Abuse/Molestation covered under the Liability or as a separate limit)- Business Auto Liability ($1mm)- Workers Compensation & employers Liabiltiy- If they paid to make modifications to the property to be able to operate (ie. ramps, special doors, etc.) they may need Additions & Alterations coverage depending on what your lease says on who owns those.They will probably seek to add requirements that shift the burden of Insurance to the tennant for something that you both get drawn into.  

@Jason ClarkeAs a general rule, in NJ, areas with good school districts have lower cash on cash return because they are desirable places for families to live.Less desirable places command a higher Cap rate which translate into high CoC depending on the level of your investment.So a combination of good school district and solid cash on cash return is hard to find, in NJ.

My recommendation, try to figure out how to finance a property from the auction, AND line up a financing option in case you come across something from the MLS or FISBO.More options and hopefully that will translate to more chances of success. 

If you do this, it will translate to far less fees to an accountant who would otherwise have to charge you for the time incurred navigating what business expenses you incurred in your personal accounts. 

I would suggest altering the question you are asking a little and simply consider the best markets period. 

It allows you to start EXTREMELY simple and free, while adding tools to your skill-set, without having to recreate or alter your data.

4) contracting with a builder - are there generic contracts to start with and have a lawyer alter to fit?

- https://www.realtor.com/realestateandhomes-detail/3661-Alter-Pl_Cincinnati_OH_45229_M49661-05795?