We also began to receive notices from the city pertaining to code violations.

This MFH property is 50+ years old and the City wants to enforce recent building codes on this property.

Is your basement apartment up to code?

The best system for generating motivated seller leads in my opinion isGQREA: http://RealEstateLeads.pro.They are a real estate trade association and they actually schedule appointments in the zip codes we gave them.My account manager is Andrew and their number is (877) 677-8077.If you call, just let them know I referred you.

Zoning ordinances, building codes, and ADU rules are all hyper local, so I would suggest you get an architect involved to help sort through everything.

Are your requirements too strict?

You need to have some strict verbiage in your listing and your RA about this.

Here is the zip code: 07111

Gold Beach has strict STR rules but outside city limits in the county there is very strong oceanfront value that can get also obtain a vacation rental permit, listings there do typically go pending quite quickly. 

If affordability is your main goal, areas like Hixon and Middle Valley (the 37343 zip code) or Harrison (the 37341 area) have homes at the $200,000 mark.