@Leanne SorgWell, there is the concept you don't always need a LLC...But, you probably need a builder's risk policy on the property during rehab. 

This concept can be seen in new construction trends where builders are opting for larger bedrooms and each room to have an en suite bathroom for convenience and privacy for tenants. 

Here are the stats to help others learn where I faltered.Purchase of 1958 (never remolded) SFR with basement/1st floor in good neighborhood, 1350sq/ft.  225kGut job and rebuild during COVID: 200k w/improvements (finished basement, shed with insulation & power for office, no builder quality items used, rear deck). 

ok thank you everyone for the great insight. i will follow up with builders and see what their rules for renting are!

@Duane Gunkler  I assume this is a custom home and you have a contract with the builder. 

For example, the rising cost of lumber alone added nearly $13,000 to the market value of a multifamily unit, translating to renters paying an average of $119 more per month to rent a newly built apartment, according to the National Association of Home Builders.

Our builder did not make our home top priority.

As a seller right now top dollar is tough to secure, especially if you are competing with builders.

Hi All - looking to speak to a home builder in northern NJ.

Ask the builders in the area what their considerations would be?