One thing that seems to be universal across markets is the ROI of the higher bedroom count.

If you're self-employed or if you want to count overtime or commission, then most underwriters want to average two years.

I'll go first: I don't have an exact count but my PM tells me it's 20+ in a 1,000 sq foot townhome.

Do they count toward the permit cap?

You must likely will be able to double your revenue if you lease by the room if the room count is 4 or more. 

I suspect there are many locations were 1% is exceeded if not counting the land value. 

I am concerned that the local market will not support long-term rentals as I do not see any listed that are comparable size and bed/bath count.

I dont have the full purchase price of this 4plex to invest though, so I would have to finance half to 2/3 which seems like a stumbling block. i can still make the numbers work, but at a much lesser monthly profit i suppose. i also dont have the w2 income to support 2 mortgages (counting the one i have on my house), so i assume any bank would have to count the existing leases towards my income which i understand is possibleI guess I was wondering about advice, or red flags, anything, on this specific deal.

Be aware of that syndications where you are a limited partner do not count.

You may not be able to swing this one on your own but it will count towards the next one as long as it is successful.