Would the government pay 100% of the rent due to the tenant being on disibility and eliminate the need to collect any portions of rent that a tenant on non-disibility would have to pay.

Plus, if you’ve ever read the three “Not So Big House” books, you know that eliminating hallways between rooms means less WASTED space.

Doing that will eliminate part of the hassle but I assume you're aware that you will likely make much less money than with US LTRs and that the laws are much more tenant friendly than anywhere in the US.I know Valencia quite well with the perspective of a North American (and European) as I was going to invest in STRs there after the Costa del Sol but, sadly, they've banned STRs there so I had to reconsider.

Certainly vet your  GC and the subs they use ahead of time but that will merely mitigate some of the risks, not eliminate them.

Perhaps adding an additional half bath is optional and could be eliminated if issues come up or perhaps for someone who is hands on perhaps they could take on more work themselves if they needed to and extend the rehab time period.

Hardwired and interconnected vs. solely battery operated depends on what municipality or police jurisdiction the property is in, the date of the requirements, the grandfathering rules, and the last time a permit was pulled, which would have probably eliminated grandfathering.

They're trying to eliminate a landlord's ability to ask for market rent if a tenant moves out and you have to rent to a brand new tenant that you've never rented to before.

You eliminated your listing from every buyer’s email that told their realtor they wanted to spend $1M or less. 

This should eliminate the homeowner (1) selling a property while remaining liable for the note (subject to), (2) tying  up his property with a “buyer” who has no intent to close unless he finds someone to pay a higher price (wholesaler), (3) paying above market rental for an option to buy that can never be exercised (4) purchasing a property from a fix n flipper who did shoddy rehab, (5) purchasing a property with nebulous legal title, (6) contracting for home improvement with a fly by night contractor who then puts a mechanics lien on the property and (7) “listing” with a wholesaler disguised as a Realtor who doesn’t put the home on MLS. 

@Alex Todd, yep, you would qualify for both as long as you sell next year in time.So then the question comes down to - If you're going to make the same amount of money either way would you prefer to sell now and 1031 (but eliminate the risk of another year holding).