To maintain the Premises in compliance with the applicable health and safety laws of the state, and of the local units of government where the Premises are located during the term of the Lease.

Screen them hard for your safety and for theirs. 

part of the problem though is that a lot of new investors are coming in now armed with content from >5 years ago and ready to 'retire' off the cash flow from 4 C- rentals. 

Rates on DSCR are lower and they offer ARM and I/O interest only options.  

I do know that very few municipalities won't require egress and life safety considerations.

Hey Bans, If I were in your shoes I'd take the ARM.

If you can qualify using your income I would avoid DSCR but again its not the end all they have value.DSCR single family requires 15% down, 2-4 Units require 20% down, they offer 5/6 ARMS, 30 & 40 Year fixed and I/O Interest only options which can help cash flow first few years.

Locally, I know an investor that runs a crazy profitable trailer park where he is probably pulling in a 20%+ annual return on his investment - but he has to self-manage because no one will touch it, collects rent and deals with evictions armed, and has several "overseers" living for free on site to make sure no one burns the park down.

Granted MFH are more common in rougher parts of central jersey and my purchasing power can't acquire me something in North Jersey here homes are much more desirable when it comes to appreciation and schools and safety.

It makes sense they do that for safety reasons but how frustrating for you!