That’s a big mistake and to not grant an exception is nuts. 

Would it generally be a location that tends to have a higher cost of living? 

We have a development coming up for approval with the county adding over 100 units bordering our small town and you can bet everyone that lives in our town is upset about it. in the end though, the planning commissions in our area tend to follow the letter of the law so to speak, so if there is nothing in ordinance barring it, they will approve, generally.

Some will do but they tend to be far and few in between and the terms are not very desirable at all.Another options is to take down the properties with a bridge loan. 

Mortgage rates tend to fall as the supply of funds in the mortgage market increases, making homeownership more affordable.

For these, costs tend to double across the board, especially for older buildings.

Those that tend to have a bad experience, is typically tied to poor Sponsor selection or offering selection.

Quote from @Paul Lucenti: Creative methods tend to increase risk.

I do have a third goal, but too much will happen by the time my second goal materializes that my third goal will likely change drastically.Also, I tend to find myself wanting to ask market-specific questions to agents/lenders/investors/contractors/etc. a lot.

Further, people committing to a rental for 6 months or more tend to treat the furnishings with much more care than the 30 day stay tenant.