.- Overlays - some lenders may have more restrictive overlays than Conventional guidelines call for.

Implementing restrictions and hurdles, and fees. 

What they have done amounts to rent restrictions which are against KY state law.

Reference : https://www.tiktok.com/t/ZTNs32kbD/also how to know what are zoning restrictions and state code if they adhere to or not ?

The second phase will introduce modest restrictions, with continued data analysis to inform further regulatory measures.

As someone from Newburyport, I see similar trends in greater Boston and agree that strategic investment is key (espeically with tightening restrictions).

Or is it restricted entirely to ingress/egress, i.e., I add 150 square feet and put in an exterior door, but I can't use the 150 square feet for kitchenette, laundry, etc.?

Your debt will restrict how much you can borrow. 

assuming they would not restrict your use of the property for investment purposes I have to wonder if this would be an efficient way of partnering in the beginning of your investment career?

And when you do go through a cycle and have to tighten your belt or some deals just dont/or did not work..