A few more seasoned investors have told me, perhaps controversially, that most cities place such onerous zoning restrictions and are completely inactive in aiding affordable house because lower income and lower-mid income residents are such a net loss to the cities, i.e. little tax revenue and big consumers of city services.

I would technically still be living there to claim it as my legal residence.

Unfortunately, my only real estate experience to date is my primary residence.

Currently my GF (also a veteran and we are not legally married yet) has our rental property and current residence under VA loans.

It is currently occupied and the residents seem okay with the work being done.  

what I did with some on my hard woods on a few of my properties I traded logs for finished flooring and had some really cool custom oak flooring made for my personal residence. 

We used Home Legends engineered hardwood from home Depot on our personal residence.

Or if you want to get rehab loans through a bank, your options would be a 203k loan (if you intend owner occupy the property) or a HomeStyle Rehab loan if you do not plan on it being your primary residence. 

Closed on 7/20/2018- Repeat On our way to buying an undervalued 7 unit (waiting for amended contracted to be signed by seller as of Friday) All of this was funded by a HELOC on my primary residence.

Area median income is $53k, so with your average rent of $714/m ($8,568/yr) that's only 16% income/rent which would indicate there is some room for people to pay more - but only if the comps are either already at or very near that price point, or your units are far superior while not pricing residents out.