Define a criteria you are looking to target in a property..

Other than a few different aspects of a large building verses a small duplex a deal is a deal. for sure make absolute you know the market and that the numbers will work.

This makes it very difficult to qualify for an exception as it would be challenging/impossible to rent out as a "long term rental" - which I can't quite tell what is defined as.Any thoughts on strategies or ideas on how to deal with this, aside from simply selling and getting out?

Well, in PA landlord tenant matters are handled by the magisterial courts; the magistrates aren't necessarily well-trained on all aspects of law, and their decisions sometimes are counter to what one might expect based on the letter of the law.

It sounds like you've already taken the proper first steps, which are to learn as much as you can and then to define your investing strategy.Your dollar will certainly go further in the Phoenix metro area than it will in Orange County, and there are numerous 2-4 unit multi-family properties in Phoenix, Mesa, and other suburbs that are within your budget. 

@Sam Burnoski, others have already answered you well on the loan aspect, so I am going to address the property itself. 

@Jake WalrothWhen I define West vs.

Good point on the SFH landlord vs apartment aspect.

You need to thoroughly study all the aspects of finances and investing and learn your markets.

Just from that aspect I can see why taking repairs is more beneficial.This provoked me to do a little more research.