We manage residential properties all over Philadelphia and a few units in Delaware county as well. 

My town does not have rent control, and the house is on a residential street where most people own their SF homes, and the street is zone for single family homes.Can the municipalities not allow me to rent each floor separately?

For example making sure the builder collects on just 5 draws versus collecting money before work is completed.Any advice would be greatly appreciated.You will likely have a hard time finding a residential builder that will agree to a penalty clause.

That’s what makes the most sense to me but I’ve read so many posts about how most banks won’t give a residential loan to an LLC.

@Mary AnnI have seen programs before for commercial/mixed-use properties that are no income (no doc) loans but they require 30%-35% in equity/down payment and the rate is normally 4% higher than a traditional 30 year residential loan.

 I see investors with numbers that seem very low and some with numbers that seem unrealistic.I tend to see 14-16% ROI on average, but I've seen as low as 10% and as high as 40% for residential rentals.I'm curious to hear what the BP community is getting in today's market and what your minimum is to satisfy you and for you to consider it a great investment.Anything less than 25% doesn't seem to satisfy me.

I have some residential real estate experience but nothing in commercials.

You can buy up to a 4 family and still stay in the residential mortgage side of things versus the commercial 25% down and all that jazz (5+ units).

Most lenders will not loan to an LLC as a residential loan in my experience, until you are established.

According to local Residential Tenancies Act, I can serve him a "Notice of Entry" and enter in 24 hours, regardless of whether he welcomes it.