They are flying off the market as soon as they hit and a VA comes with a lot of restrictions for the seller. 

Some might have some restrictions on this...but allow that. 

I am tying to determine if in NC a landlord is able to charge the "standard" late fee 5% of monthly rent or $15 whichever is more (I think that is the current legal restriction) PLUS a $5 per day additional late charge on top of that for each day a tenant is late?

I don't think his strategy for eviction is taking into account federal restrictions either.

Best bet is to start with the city and find out what your building limitations are based on setbacks lot coverage height restriction etc. 20 foot wide lot will be difficult to work with

I know renovations in condo units are restricted to HOA rules but unsure the rules regarding renting.

Your contract can only impose penalties if they don’t follow through with the purchase.

I used to teach this, and I still do it with properties I find where I can negotiate a good deal, but not good enough for me.The properties don't have to be distressed, they don't have to be restricted to homes in good, bad or ugly condition. 

There is no written exception but reach out to the Fannie Mae Resource Center (800 2FANNIE) and explain that you'd like to pursue an exception to the Owner Occupant Deed Restriction and what is the best way to pursue.

They are going to be some of the most restrictive investments you can make, sometimes even limiting what furniture and appliances you can use.