It's an amazing market to be in because you can still find the 1% rule and positive cash flow while getting amazing appreciation potential.

That is what the OP is wondering how he navigates those rules etc.

Offer a great first-stay experience with thoughtful touches like welcome gifts and clear communication to earn those initial positive reviews.For Big Bear’s rules, stay on top of local ordinances—maybe even connect with other hosts for advice.

The rule of thumb is, if you can't handle the potential call from the lender, don't do the deal. 

Purchase price: $160,000 Cash invested: $35,000 Purchased this property as a turnkey investment at the 1% rule moving equity from another deal.

Depends on the town’s rules, though, so check that first.Renovation Loophole: Some places let you raise rents or get out of rent control if you do big renovations.

Your strategy for rentals will have to be short-term rentals, considering you are a full-time employee and will not meet the material participation rules. 

:Quote from @Jimmy Lieu:Have tons of examples of deals that hit the 1% rule and positive cash flow.

Are there rules about renting it out?

In this economic environment, creativity rules.