The vast majority of buildings will allow you to self-manage (AirBNB/VRBO) or use a third-party management company to oversee operations. 

More Federal Reserve officials at their meeting last month signaled concern with cutting interest rates too soon and allowing price pressures to grow entrenched.

I had to negotiate with my existing construction lender to get then to allow me to use the in place construction funding to get the property to cash flow so I could meet my obligations.

Either with residential or commercial, yes, there are programs that would allow you qualify based on income/debt.

I'm assuming I'll get a lower cap on that and my only way to add value is by increasing rents annually based on the provincial max amount allowed to increase rents?

My plan is going to be to sell the homes ranging from $40k-$60k, which will allow me to pull out about $400,000.

So as a compromise to the tenants comfort level I felt that rather than making them cold by me forcing them to keep it 10 degrees colder than they desire I will allow them to pay to keep it as hot as they want it.

Obviously yes, although, creatively financing when possible will allow you to stretch your investment and potential upside, but yes, cash offers have won out in every single one of my deals that I have sold in Asheville. 

This still puts you at risk by allowing the renter to do work without the proper agreement.

Pros - cost effective entry points which will allow you to scale your portfolio easier. - Depending on your target market, you can get decent cashflow from day 1 + appreciation as time goes on (if you target  a market with good population growth and other catalysts) Cons:- in the beginning, not being able to see/go to the property and having to trust a complete stranger with your investment.