I have done this  in the past but also require a lease break fee in addition to them being responsible for all rent until their lease expires.

I am looking options on who can finance with a construction loan, as well as any advice on how to project soft costs, hard costs, and other miscellaneous fees. 

Architecture fees alone are going to $30k+ on a $600k building.

It doesn’t really matter....she will get the surplus above the $375k.....if someone buys it at the auction for $900k, is the same thing as her selling it herself, and maybe with less fees.

New utilities should be installed as to allow for costs to be passed to residents. 

However after condo fees would it really be cheaper? 

In Texas, it doesn't cost extra to make a series LLC when you form it or renew it annually (in Texas we don't even have renewal fees).

Sounds like he is somewhat successful, but it could be because of the amount of people paying $997 to sign up plus $97/month coaching fee (not sure if the cost is still the same from what was said 10 years ago) https://www.biggerpockets.com/...

I don’t want to make the mistake of setting up an LLC or S-Corp too late and running into problems, but I don’t want to deal with fees and a ton of paperwork for a business that isn’t creating income yet.

That doesn't necessarily mean a paid membership here, but the point is that denigrating memberships is really just saying "I don't think what I want to achieve, or offer, is worth paying the Pro membership fee", which is about $20 per month.