They like the idea of owning this property as a rental and then eventually having it for a family member to retire in since it is one story and in eye shot of their current home. 

The ordinance itself says it is intended to "protect residential integrity."

Congrats on your amazing work, Aaron, Your story is truly inspiring for new investors on BiggerPockets.I’m eyeing some properties here in Upstate NY, but feel a bit scared to go it alone.

Liquidity is equity, equity gives you protection from any lien holder whether seller, bank, HML, or PML.

However there are some states that protect tenants a lot... 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

The longer that you are in business the more familiar you get with how to protect yourself.3.

To address potential future problems, wouldn't a homeowner's policy and/or home protection plan cover any occurrences?

It is important to have eyes on pricing daily in my opinion. 

I'm in Alberta, so ASC has rules around what's allowed and what isn't (mainly aimed at protecting the public/investors).