For example FHA guidelines say you can deny an ESA if they cause an undue financial burden, cause a direct threat to the health and safety of others (the letter from the neighbor supports this), or cause substantial physical damage to the property.

A larger home (3/2+) could be a good fit for insurance rentals.

Some lenders will base off the "mix" of commercial vs residential by sqft and some will base off of rent, and some will base off of the unit counts, so you'd want to take advantage of the lender/broker that can fit your scenario in the most favorable way possible.Is the property fully occupied?

While the 100% is out there, it is usually very expensive and most certainly is not a fit for every investor for every deal. 

He had some rentals but I was never interested until my wife and I were looking at Zillow and said F it, lets buy and rent a townhouse. 

If the current MtM tenants fit that profile, great!

Whether you're looking for a turnkey property or a project you can add value to, I’ve got some strong investment opportunities that would be a solid fit for a new investor.Feel free to reach out anytime!

I should also mention that this property is a microloft (<300 sq ft) so fits just a single individual.

Today, he was showing me a property I had asked to see and he let me know he had another one coming soon that he thought would be a good fit for me.

I fit their demographic as far as being new to investing and not having much to invest, so I feel like it's the easiest and best way for me to jump in, but your concerns have me listening.