However, I disagree with your comments that the investor buyers who buy these homes have a greater appetite for risk and know the risks that exist.

Give The Ultimate Guide to Grading Cleveland Neighborhoods a read to see which neighborhoods fit your appetite for risk. 

But I think savvy investors will be able to navigate those laws to take advantage of artificially suppressed competition to do well. 

Illegal labor suppresses wages, supply and demand.

Does anyone know the appetite of the HOA? 

And if you are doing a short-term deal (flipping, etc.) what is your appetite for risk?

Wondering also if there are lenders that would have an appetite for this type of property?

Some investors have an appetite for 3% (low risk) buys, like a Walgreen's parcel.

They were selling on pro forma, but the market and the debt market have shifted, and it's aa lot harder to achieve higher pricing with lower rents.We've purchased over 2,000 units, and the simple answer to the question is that they are either mom and pops and run their businesses with ZERO KPIs, they do not want to risk losing tenants if they raise rents, and they don't treat their asset as a business.When you take over, it can be difficult to get rents to market if they are very suppressed.

Some lenders have a greater appetite for foreign national loans than others.