Each city has its own laundry list of licensing requirements, but they have not had the power to limit the number of rentals or make other market-limiting moves.This issue is likely to come up again.

You stated once a variance was denied, new plans were approved and permits issued.

State - it depends, you can have real estate transfer tax issues / re assessment issues. 

This will show traffic, civil, and criminal issues and local history.

Our MTR does and we run the risk of Measure 1 issues, someday.

That is not enough to have a great impact on the issues facing real estate investors at this time.

We got beat out by other buyers on the deals that worked, we went under contract on 2-3 duplexes and backed out when major issues were discovered during inspections. 

To preface, this is my first rental property purchase and unfortunately, I realized halfway into owning the home, that the home is way too old, with many problems left behind by the flipper who tried to cheaply fix a lot of the issues. 

@Dave Foster you are a genius at this I can seeI have a similar issue, so a followup to your answer: what if I don't own the entirety of the LLC that owns the 1031 exchange parcel property and is going to have the improvements?

You should also ask the lender if they will permit you to owner occupy the property, since many commercial loans are not designed to be "consumer loans."