Change orders are going to happen, but by needing approval from you before they move forward, this allows you to control expenses better and/or make adjustments in the SOW so that you can stay on track and on budget.

Keep in mind rent control is 1 thing, its a laws for existing tenants but some city's like Newark are so strict that you must get approval for what rent can be even after a tenant moves out and new ones move in. 

What precisely went wrong?

I leave in the Greater New York Metropolitan area, precisely in Jersey City.

There's a lot of suckers who attend these sales, particularly for the lower priced properties and that's precisely who you don't want to be bidding against.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

They could give you a more precise estimate and help navigate zoning regulations and permitting.Let me know if I can help or if you want to discuss your plans further.Best of luck with the project!

@Andrew Slezak I recommend you first articulate precisely the liability events or concern which are pushing you to transfer the property to an LLC.

One key lesson was the importance of precise budgeting and renovation timelines.

The precise property forecast can vary depending on a lot of factors but the general demand is really what you should use the tool for to make your plans.