Anything can be a good investment but pricepoint, ability to execute and a host of other things matter as well.

Other than that, have at it.I know my limits, however, and realize taking on a project of this magnitude is beyond my current ability.

@River Luce I would suggest that you start looking for properties that offer you the ability to create value. 

I make sure that the property has the ability to cover itself via rent in case of a market downturn during rehab.

That understanding will give you the power to control the answer, and make better decisions that end up generating higher numbers to the right of that $ sign.In other words, don't make decisions based on the numbers to the right of the (=), make decisions based on the elements you can control to the left of that same (=), and the numbers on the right will fall in place as you wnat them to.

While fees would be paid by the tenants, I'm concerned that this is basis for a reduced term rental permit and impact my ability to renew permits. 

Set your budget based on cash on hand or ability to raise and what you may qualify for with a mortgage.  2.

I am currently having conversations with a lender that will work with me on Home improvement loans giving me some options on improving distressed properties, but I will need to ask if they have ability to do wraps.

Even if you go bigger, they will still be looking at you and your ability to pay the mortgage, you will just be on the commercial side of the bank. 

I'm trying to determine whether the new rules regarding tenants will impact my ability to not renew month-to-month leases.