We have figured one house per year should get us close, depending on the cash flow obviously.

The pref equity would pay out a 7% (annualized) quarterly distribution and a 7% back end return when the pref equity capital is returned.

Pre Payment Penalties of 2-3-5 years are common but can be bought out of in upfront points or increased interest rate.

If talking to more builders does not work out to join you on transaction #1+ and you have enough capital and heavy rehab experience along with a GC / builder doing the project many lenders out there will offer you a lower leverage loan for your first project on your own.  60% finished value and 75% LTC is probably achievable without a builder in your company for the loan. 

I got a good deal on the house, but do not want to invest in it if I would be out of compliance with renting regulations.

Usually people use the enemy method to figure out the worth of the investment.

i will also do a BRRRR if i can break even when i'm done and get 90+% of my cash back out. 

@Suhaib RehmanThere are investor platforms, such as Cash Flow Portal, that offers underwriting tools that incorporate AI and automation.

What should I have the realtor look for when he goes out to see the properties?

I have a 9-5 that I want out of but want to secure at least my first property prior to leaving it.