However, they require consistent maintenance to avoid becoming a liability.

I got an email today that the BOI requirement was on hold again since the fifth circuit reinstated the injunction today.

You should require the new person to apply, pass your screening, and sign the lease.

While they often require some level of repair or renovation, the potential for significant returns makes them an attractive option for many investors.Why Invest in Distressed Properties in Phoenix?

You'll need to meet requirements like parking and setbacks and might encounter additional hurdles in environmentally sensitive or historic areas.

And even this requires some funds - closing costs on the buy, monthly payments to the seller, and other holding costs, insurance, appraisal on the refi, etc.

Pretty,  as others have stated here, the permitting process through the City of Cape Coral has been hindered by their ability to scale up their staff to handle the massive demands for all permitting including new construction but also anything else that requires a permit, home improvements, sea walls, alternative sea walls, pools and more.From your post, I can see that you are frustrated, and I believe some of that is due to not understanding the steps and processes of new construction, including what must be done prior to submitting permits.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

Because it's required by law

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.