It would also reduce my Loan to value on the 1st rental to 80% and eliminate my PMI on that one which would keep my mortgage payment about the same or maybe even a little less accounting for the higher interest rates now.

This legislation will reduce the interest rate from 12% to 8%.

For example if I can buy a 120,000 home for 60k, rehab for 15K and get it rented and it is cashflow neutral, that might be a really good investment property for me depending on my goals.Or if I can flip a property and make 50K and I use that 50K to reduce the lending on the above property so that it now cashflows, that is also a good idea.

This reduces the quantity of mortgages, allowing you to go back to the conventional well, so to speak. 

Sure, it might be an appreciating market, but forcing $4,500 relocation payments reduces the amount of profit a property makes, which thus reduces the value of your property, which is (for commercial buildings over 5 units especially) based on the amount of profit a building can produce.

Not sure if a judge wouldn't count text as notice in this case though since they tend to be more like Judge Judy than Perry Mason on issues like this.The dishwasher, I would not allow for reduced rent.

I guess my main concern would be reducing the applicant pool when it comes to families with young children.

I've thought about letting him buy one and giving him reduced rent until its paid for, letting him buy it and hopefully teach him to not burn the house down, or just buying one myself.

It's like selling something at a bargain price; you only reduce the price because you can't sell it for the original price.  

Not sure who your policy is through, but I know some companies are changing their policies to pay a reduced value of roofs based on age, especially in damage prone areas.