They recently ran Uber out of town, put restrictions on short term rentals, and some members of the city council have great ideas like rent control.

Keep control of everything you you are responsible for.  

Doesn't matter how neglected the property is, doesn't matter that the tenants are rent controlled and 30% below market rents, all that matters is the magic words "2-4 unit" and "on the MLS."

If done correctly (not necessarily like this example, which just made for easy math) the investor typically gets substantially more cash out at refinance than they put in intially, in addition to continuing to control the asset.

I can see the advantages of controlling a property that way, however, at the end of the day, I am in essence buying the property for the balance of the note.

I personally like the control and I get along great with the other agent. :)To further clarify, if I had a 6% listing agreement I don't think I'd ever agree to reduce down to 3%, I don't care how much work you claim you'll be able to do without me.

,Since W2 employees get taxed BEFORE they get their money, you're kind of up a tree on this one.You'd do better to find a way to pay yourself from your deals thru an S-Corp so you can control how much of it is actually salary (earned income) versus dividend (regular income).

You have full control, the agent works for you. 

The law linked above states that if there is a conflict between “the provisions of this section and the terms of a written lease, the terms of the lease shall control.”

@Dalwin Garcia Rent control in Passaic applies to much any investment property except: single family home, single condo/coops, owner-occupied 2-family and new construction.