The only issue is the interest rate is 7.125%.

If before getting a permit you have to dance around for Code Dept officials/ city gov and crime is thru the roof, investments will definitely be low whether real estate or other, but it should be benefiting the city officials to keep things that way.

Your biggest issue is that $50k may not let you get a nice house and have any reserves.

The issue is that if they say no, and no one else bites, I've shot myself in the foot. 

Renovations were quite a bit more than we had expected due to more issues than we were aware of.

Bananas and coconuts have similar disease issues.2.  

If your project qualifies for EPP (Express Permit Program), then you don’t have to secure permits in the traditional way.

We typically have a specific criteria of contingencies we are putting into place within the purchase and sales agreement to help protect our investor clients from many of the issues that arise when inherenting tenants.

What is as important is that you require the insurance to be issued with you as the landlord as "additionally insured." 

From personal experience, there are multiple issues that can pop up and it is nice to be local to deal with them.