As a Cap Rate is indicative of the risk involved in owning the property, you want to focus on doing things that make your investment less risky if a bank ever had to take over.You can make your investment less risky by doing some of the following things:- Convert all month-to-month tenants to annual leases- Implement strict minimum rental criteria- Add security cameras- Make large capital and preventative improvements (fix drainage issues, install water pressure regulators, replace old HVACs...you get the picture)- Essentially, prove with action that you are caring for the property on a long-term basisThe only way this is effective is if you document everything you are doing as well.

@Ardian Selimi - others may disagree but I think ground up construction for your first deal is taking on an unnecessary amount of risk. 

I know about 1031 exchanges to avoid taxes but not getting a loan against the house to prevent profits.... 

Any other suggestions on how to prevent these instances from reoccurring short of having them apply before I show the units?

Your not supposed to make it owner occupied during the term on the hard money loan, but nothing prevents you from doing so now that you are doing the refinance. 

Understanding peak seasons, local events, and average occupancy rates in your area can prevent underselling your space or pricing yourself out of the market.4.

They will also be able to use minor infractions as a way to suspend short-term rentals, revoke their registration and prevent them from gaining that registration back without enduring a lengthy and costly judicial process.TAKE ACTION TODAY!

If there are active lawsuits this can also prevent or make financing for your end buyer difficult.   

This bill also prohibits the development of small subdivisions and prohibits ministerial lot splits on adjacent parcels by the same individual to prevent investor speculation.

An ounce of prevention is better than a pound of cure.Inspectors can vary DRAMATICALLY in their experience levels, and their thoroughness, and even the best inspectors will occasionally miss important issues (nobody's perfect).Therefore, each time I buy a property, I don't use one home inspector, I use SEVERAL layers of inspection done by SEVERAL pros.Yes, I use a regular home inspector, but I also have an experienced plumber scope the sewer line on EVERY property before I buy.