If you buy a single family and say oh we could move in, you are restricting your investment.

Through a combination of odd circumstances I find myself looking for a new tax preparer and will be sure to ask up front now about expected costs.

Despite end user/consumer having restricted fund's/affordability.

There are also some odd ball programs out there that will allow you to do a 2nd DSCR HELOAN to get some remaining equity but the property must still debt service 1:1.

I am having issues identifying if there are any restrictions.

There are still restrictions on setbacks from property lines, but local zoning and HOAs can no longer stop you based on the state law. 

From an ROI perspective, there is much more money to be made in development, or investing in the booming short-term rental market in the Southeast where laws are significantly less restrictive (particularly in North Carolina, where municipal permitting is illegal).

Also noted, most townhomes reside in HOA communities that have rental restrictions/caps and HOA fees that'll eat into cash flow. 

Checked with a CPA, it was odd because the loan officers / mortgage lenders didn't know I could do this until a CPA verified, then all of a sudden, they said oh yes you can do it..

I thought that was odd, I offered that she see if first or call with any questions.