Poconos - Legalities Investing in Property for Short Term Rentals

[John Solotarow]

I am two years from retirement and as an avid fisherman. I was hoping to buy a house in the Poconos for my own pleasure and also a source of income as a Short Term Rental business. I was all ready to dive into my dream house until I started hearing about how troublesome the business can be in this area. I will be living on a limited pension and thought that my rental income could subsidize my retirement income. I plan on doing a cash purchase (trying to avoid bank loan and mortgage) which I am not sure if that is a good idea.

I was always under the impression that the Poconos is a vacation area and I was quite surprised to think that STR would be restricted.

I guess that I am interested in:

1. Is there any trouble with STR in the Poconos?

2. Are there areas in the Poconos that are more friendly to STR?

3. If STR's are not an issue, does it look like it will be soon?

4. What are homeowners of STR doing now to avoid problems?

5. What should I do to protect my business? 

Bonus Question: What are some great lakes to fish other than Wallenpaupack that produce a nice variety of fish.

Sorry for the lengthy question but any feedback will help me with my decision.