@Scott RobinsonWhat are the expectations in the area for exterior rehabs?

This is a complete reconstruction after a fire and the only components remaining is the roof and exterior walls.

You are doing them a favour allowing them to go M2M as opposed to placing your business interests first so in return they need to understand there is a price for the favour.

DC however did not start it's path of growth until the mid 20th century, and had plenty of available land, so it was able to grow with suburban sprawl as opposed to other cities with less land to spread out onto.

In addition there is a high likelihood of considerable differed maintenance (roof, plumbing, electrical, exterior, etc.) which eventually will need to be addressed and will drive up your capital expenditures.  

(I’m not describing this well, but instead of putting more insulation in the wall, is there something that could go on the exterior of the wall?

Operate exclusively as a business and then contribute money to charity if you wish.SFHs are very high risk and are primarily an appreciation move as opposed to a cash flow investment.

Im not opposed to rehab/turn the property, but if you have a good day job, search hard and find something that where the numbers work for you to hold on it and rent it. 

Follow your state codes and once you have filed offer to allow them out of the lease as opposed to having an eviction on their record.

Your comments on the beach community appears to show you are considering that area partly due to emotional attachment to the area as opposed to making your money work at it's highest and best use.