So we started thinking of ways we could entice residents of the neighborhood to rent rehabbed homes without the fear of not being able to afford rent and the property generates guaranteed rent role without high tenant turnover or encountering high vacancy rates.

What potential issues may I encounter along the way?

I've encountered situations where the homeowner abandoned the property and the front door was left unlocked so an appraiser was able to run over and get it done.

HI Gurus   I encountered a multifamily apartment deal which was built in 1954.

The same $100,000 spent on one house will bring in $850Rent/Purchase percentage better with cheaper houses.If someone trashes a cheap house, I clean up and move onIf someone trashes an expensive house I am sickI am a cheap house buyer So have you encountered any problems with all your cheap houses being in bad neighborhoods? 

I had to pass one home up earlier in the year due to a lack of available funds, so don't want to encounter this situation again.I feel like there must be a HELOC option somewhere for those with a higher # of rental properties, no?

I have never encountered a bank who loans in a market I'm investing in ask why I was investing there...other than is it a primary or investment property to establish the risk profile. 

However, I would contend that Ontario is central Canada, not East - there's another ~2000km of Canada east of Ontario ;-) Those 1%, 2%, xx% "rules" you read about here on BP are more correctly "rules of thumb" and can be useful to quickly triage a property when you encounter it.  

There is also a fair amount of entitlement that you may encounter as well.The well-maintained and managed properties with good tenants at market rent are almost never for sale. 

For first time investors one of the biggest problems they will encounter, and will often sink their investment, is a poor property manager.