I own a small multifamily commercial in Albuquerque and can confirm the diversity of the economic and cultural factors that you mentioned. 

Im looking at purchasing a duplex in middletown, Ohio.

The labor is cheap but is usually terrible quality.You have very little insight into the governments plans for development and i have seen that have amazing impact on some areas and terrible impact on others.If you are going through with the purchase i wish you good luck and urge you to consider traffic patterns.

In light of that did the developers wind up getting a pretty decent deal out of this after they took a big risk on a property with crazy restrictive zoning and no clear path forward prior to purchase?

I have a unique plan for getting ADU's done quickly and economically.

The environment now with higher interest rates and higher purchase price does make it more difficult but definitely doable. 

Quote from @James Hamling: Uh-oh @Marcus Auerbach, pulling out the Charlie Monger and economics. 

I have dual graduate degrees in both economics and finance.  

The asset was purchased at 76 million and it recently appraised at 63 million.

A combination of extremely tough long term tenant protections and the economics of short term renting being a lot more attractive.