Great post - I have several inquiries for clients with the desire to own coastal STR's and just noticed the red tape is suffocating when I would dive into listed opportunities and feasibility with the municipalities. 

Quote from @George Red: I echo what @Jon K. said... if you're still interested after doing some additional due diligence, try starting with 1-3 as opposed to jumping into 10.

Many years ago, we had NPLs in NY and the bureacracy and red tape was staggering.

It's important to understand their reputation in the industry and the market, as well as any potential risks or red flags.Knowing your client's objective is also crucial.

Applicants offering to pay extra are a red flag.

This is an immediate red flag.

Did you get red tagged?

How do you address inspection issues or red flags? 

I feel like I have less of a buffer now and any little bit of capex could put me in the red.

For example if local rents are $3k/mo and your house hack in $1k in the red, thats a sweet deal.