Part of me just wants to just post the space up for rent and see what happens, But the more rational side of me wants to figure out the regulations and do it by the book.

Keep calm and handle the situation rationally.  

Our rational is as follows:We can command $30 - $50 additional rent for en-suite laundry;It is a differentiator in some of our markets (not have coin-op in student rentals goes a long way);Installing the laundry ourselves ensures it is plumbed correctly with drip/catch pans (plumbed to a floor drain) under the washers;Providing the machines cuts down on the damage to the building of tenants moving machines in-and-out;Using high-efficiency units cuts down on water consumption;appliances are depreciated over 5-years (in Canada).  

I still cant rationalize the numbers when it comes to new const.

High total debt doesn't concern me as much as the front ration, reasonable people have to live somewhere and more likelky those other debts would fall behind before housing.

You rationalize it to yourself that it's a better option than selling and that you're at least having the renter pay down some of the mortgage principal.  

You can rationalize taking out a 10% PM cost when you're doing it yourself, but only if you believe your time is worth $0.

To date still no suitable response just deflection and talking in circles...You cannot rationalize with an irrational person. 

In DFW a rent ration of 1.2 is pretty good though some investors will tell you 1%+ is good enough. 

If there is a rational explanation I would suspect burglary or the carbon monoxide explanation.