My contract states I am paid 100% of design fees before permit filing and/or signed and sealed construction documents are released to any party.

If anything slips (permits, contractors, financing, material delays), your contingency gets eaten up quick.2.

Other than confirming the permitting which you noted, I don’t know that there’s much else you could have done.  

Creative Structures Portfolio DSCR loans: bundling multiple rentals into one loan to smooth DSCR across the pool.Interest reserves on value-add rentals: lets investors finance rehab, stabilize, and then refi once DSCR improves.Seller carry + DSCR combo: layering a small seller second behind a DSCR loan when the lender permits, reducing cash in.  

Biggest things are finding the right location, getting the permits sorted, and setting up solid house guidelines from day one.

Every city has different rules for making a space legally habitable (ceiling height, egress windows, HVAC, permits, etc.), and knowing those upfront will keep you from wasting money on a half-done project that can’t be counted as a bedroom.Don’t forget a quick walk-through before closing to be sure the property is in the same condition as agreed.

If you go up to market value (assuming your area permits increases that large), the tenant may move. 

Tenant may permit guests to stay with Tenant in the Premises for up to ten (10) days.

There’s no legal workaround for that without risking fines or permit revocation.

Permits....get them....I see properties red tagged all the time.