By my estimation that means I would need to acquire between 8-10 more properties like this 12 unit, so the timer in my brain is ticking and I want to make intelligent choices on my journey to that goal.  

Matthew,As Josh suggests a specific focus will make for a more intelligent conversation.There are many differences and most are a function of the country.

I'm desperately trying to buy a house in an artificially inflated market, and my pre-qualification is lower than anything listed.

However, I think this particular rule creates an artificial market when all people including investors are not included.

Especially with newer built properties, the HOA may not be budgeting well for the long term, so the HOA fee can be artificially low but in a few years when upkeep and repairs on the buildings are necessary, the HOA fee can jump substantially.

Guessing there are some rules on this with Air BnB but hopefully if the rehab is consolidated to unused bedrooms it won't be an issue.Basically trying to approach my first house/deal as intelligently as I can.

But understand that your ROI is now going to be artificially inflated as the true cost of the sunk fund expenses will not hit NOI. 

I think it all depends on your local market conditions.The biggest part to consider is whether you're artificially limiting yourself to the point that you're damaging your income and growth.I just checked MLS in Plymouth County, MA - not too far from you.  

To confine your focus on proving there is a problem rather than seeking intelligent solutions is a waste of time.Now I would be among the first to not recommend buying a book for the answers, even though we do sell a book on one very specific piece of this puzzle.

Are there intelligent answers?