There are no municipal-level rental restrictions. 

I really wanted to try finding a duplex that i could immediately rent out the lower half rather then buy a SFH and have a higher mortgage overallHow did you find this deal and how did you negotiate it?

There's usually a good reason why the entry points are lower.

Yes they require renovations at that level but with a little love I am still getting cash flow.

Charming, smaller coastal towns with a slower pace of life, natural amenities, seclusion and semi-self sustainability are high on the wish list of many high level clients and investors. 

This conversion will begin at the end of the month.I am just sharing the above to give context to my level of experience with this type of investment.I look forward to hearing from you all.

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

Pricing and risk levels are about the same for the same type of stuff in either city.

It’s great to hear you’re ready to take things to the next level in the residential space.

You are very clearly leveling up your game quickly!