When Columbus sailed, there cities were old and had long addressed housing issues generations before. 

I’m based in Utah and plan to invest in long-term rentals in UT, OK, and/or TX.

Highlight the property’s unique features (off-grid, sustainable) and the area’s growth potential to show long-term value.

With $27000 reno cost and an added $225/mo how long is that to break even?

I've been buying SFH's out of state all cash as long term hold rentals.  

I think your clients should think about this as short-term funding that they would need to pay back rather than a long-term solution for capital.

They never advised you to take a long term rental loan from the start?

As long as you are not a borrower, there is no note or loan that will negatively affect your dti from a debt perspective.

The standard process is already long enough, add on the scope of things and that's some significant time.

Qualified applicants that get priced out of rapidly improving neighborhoods will move into these areas but it seems like they aren’t biting.High quality, lower income applicants aren’t stupid and they won’t settle.If you think this area is a losing proposition, I would think about selling and not banking on hope.In regard to vacancy, I don’t consider any area that has average occupancy (economic and physical) below 95%You might pay more for a better area but time will treat you right and you’ll make a ton of money in equity over the long term.