Licensed with permits ~$4,000.Full replacement of all water supply lines and shutoffs from the interior water meter with PEX and an open basement.  1 kitchen 1 bath 1 laundry. 

Don't just find out how it's all licensed and check on any historical issues with it, no you want to meet with local board members, find out how they really feel about the place and what the cities wants and plans are for the place.

Now, if you do not use a PMS and only have a few properties or only operate on Airbnb that’s a non-issue.

I had a similr issue a few years ago with a property in Cleveland where my property manager hit the same roadblock.

If your padsplit residents have vehicles that can cause parking issues.

Or, in most metro areas, you can obtain the list of permits that have been issued, and see who is receiving permits. 

I think the issue here is that my post is way too long and people just don't have that type of time to read through it..

See what is possible thru Special Use or Variance permits.4. 

It seems that most of the older houses we have looked at have some kind of legal issue.

I especially liked Matt's process of creating my business plan as it forced me to really think about it, get it right and make it easily understood by my clients.His process for the offering also made me think about transparency and other ethical issues that are required by law to be disclosed in the offering.