While no formal laws say this is restricted, we are getting notices saying the request is not feasible due to XYZ concerns.

They moved in and within 24 hours sent the following letter (names have been changed): "Hi Dawn and Brian,Sindy and I are frustrated, disappointed, and really struggling with the idea of moving forward with the move into your home.We realize this is the first time you have rented a property to someone, and may not be aware of the responsibilities that landlords have, and want to inform you that there are habitability issues with the home that are quite literally against the law, pursuant to Colorado’s Warranty of Habitability Law, CRS §§ 38-12-501 et seq.

look for land with owner financing And I am sure you know this but location and safety will be paramount in the Jackson market there are simply areas the crime is far to high for this to be successful..

I just bought it in the fall and am trying to complete a bunch of modifications during off-season (e.g. metal roof, certain safety features, treating the deck, possibly updating the fire pit area, etc). 

Safety: Owner-occupied neighborhoods can contribute to local safety.

Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

Than learn with that safety net until your ready to take things back over to self-manage again. 

Sb13 did not desire to provide LLs an out from addressing health and safety issues.  

Regardless when that edit was made to the contract , they can still use that against you as a landlord breaching contract.That's simply not how contract law works...

There is a lot more state regulations and lending laws change when 5 units or great.