If I reduce that down even further (pay down a big chunk when refinancing) would that help with rates?

Factor all costs into the hard money loan but push very hard to have the property reduced to offset the costs of the violations.

I see the typical fee listed, must be a high interest rate.They do pull credit (soft pull) so you have to qualify for the loan.People making good money doing short term rentals should be putting back reserves to weather a couple months with reduced or no income.

If the property you are looking to purchase cash flows, then it should be reducing your DTI on paper, not adding to it. 

Charlie Munger, one of the great modern minds in investing, condemns physics envy: the tendency of economists and investors to reduce the the intricacies and complexities of the world to simple formulas and models to resemble the order and predictability of the natural world.

Not impossible, but I wouldn't be surprised to see it drag on for months with a backlog and probably reduced capacity once they're started back up....

If not, you have essentially no recourse and must wait for "the system" to do it's thing.I recall in 2008-09 when Section 8 did a cram down and reduced contracted rents by 10% in some cities. 

If you are not concerned with making a profit and looking to cover costs or reduce the expense of owning the property then management is the way to go.

Keep your finger on the market to know where you should focus your energy and resources (what kind of upgrades and finishes etc) 

Getting primary financing that allows for secondary seller financing can help you reduce the amount that you have to put down.