He knows this Magistrate's rulings quite well and while he disagrees with some minor things, he said he won't argue a ruling on an insignificant, inconsequential thing because the Magistrate consistently rules in his client's favor (of course in accordance with the law) and some of these Magistrates and judges can be kinda like little tyrants...

Depending on your willingness to make renovations, this could lead you to more favorable returns with both cash flow numbers and equity appreciation.

Very slim odds.However, other considerations would be what is the neighborhood policy (what direction is the community wanting to go, there's actually plans for this written down somewhere and accessible online), and what does the council member in favor of. 

If you say you are the landlord you'll get all the sad stories, and when you have to deliver not so favorable news to tenants you can explain that's what the owners are asking for so you're never the "bad" guy. 

If you find an investor-friendly rental, just know that these rules can change to no longer favor you.

This has definitely been a rollercoaster, and I've been ready to pull the plug several times, but then new, favorable information would come to light and the plug stayed put :) I was very fortunate to pick up a partner with multi-family experience who is serving as an advisor and mentor, and he has been awesome.  

The other 2 option, provided there is a strategic reason to over pay would be to have the seller carry back that part of the loan for favorable terms to you as a buyer.Time is the best solution of this, it is better to walk away from a deal than over pay IMHO. 

They usually have some limitations on # of unrelated ppl, # ppl allowed per sq ftg of bedroom, etc. so you can maybe use some of these local ordinances in your favor to eliminate undesirables legally.

Since I am looking to pay off the property in 10 years, have you come across more favorable fixed duration terms from banks.

You can look in to asset based lenders but the terms won't be as favorable.