The properties are well located in Denver with value add potential and all rents are currently well below market. 

Property Valuation:Investors look at a variety of factors to determine a property’s value, including comparable sales (comps), rental income potential, and location.

You cannot have a contract that simply states "install high-quality countertops" without specifying the quantity, location, type, or style.

After living in the property for a full year, we have come to terms and accepted that this is not our ideal location.

It's worth mentioning the STR regulations are relatively new, and I think some properties currently operating are basically grand-fathered with the old permit, and I don't know if being a new owner one'd be able to get a new permit if it's not in the designated location.

@Preethi S. understand your concerns about PMCs defending themselves and throwing owners under the bus.But... how is it okay for you to NOT share all the context, yet throw the PMC under the bus, and by extension all PMCs?

If the property is in a location that would justify these standards, then wait. 

if it is a BRRRR you'd pay the seller off when you refinanced into long term debt, either conventional or DSCR.i don't know anything about the location, market, etc. but if it needs a 40K rehab, you need to push the purchase price even lower than 140K, or it will not work as a BRRRR. 

If it were me, I'd be looking for something in that location to offset the negative impact of the casino. 

HUD performed extensive due diligence on us, and had to approve us as buyer's and our management company and mangers.