Question: With a no pets policy, tenant brings a doctors note stating she medically prescribed to have a service dog to counteract anxiety condition, she moved in without a pet and knew the policy beforehand. 

When they select for the non-compliant landlords they end up hastening the decay they claimed to want to control.

http://twentytwowords.com/5-years-of-street-view-photos-show-detroits-shockingly-rapid-decay-19-pictures/

It seems as though 804C provides the limitations on showing any preference as to who you are looking for. 803 almost seems to counteract this with us having under 3 properties until I reread the line "Nothing in section 804 of this title (other than subsection (c) ) shall apply to". 

There are also other considerations - roof loading, wind shear, switching & wiring decay - that can eat into your profit pretty heavily.That said, you have two major things in your favor: density of usage and a favorable climate.

OTOH if you know the area they can be turned around.I'm watching one like a hawk right now that's all section 8 in a very nice A area because the owner is to cheap to spend anything on the building and is letting it decay.

They can claim that the stable, non-gentrifying city has equity....as it falls into decay.   

One exception to your thought process many times in those areas that decay like that Commercial LEAVES and the nice NEW shopping gets built where there are nice new homes and incomes that can afford to shop.. what a lot of these areas is left with is the corner liquor store .. you know the ones that have Bullitt proof windows and sell cigarettes' one at a time.. 

You just can’t kill enough babies with abortions ro counteract all these numbers. 

My suggestion was to start using the home -which actually serves to preserve it, whereas leaving a home empty an unmaintained results in steady decay.