Unfortunately, the zoning requirements for my area do not allow short term rentals.

Once you 've found that, go to planning and zoning and have them verify the actual uses for the land.

Make sure your land is zoned for the type of structure you're wanting to build by calling the city/county planning and permits office. 

Rose needs to be red.

Stretch your boundaries and your comfort zone, don't jump them.Lastly, if you would not want to live in the area, or building, as a renter, then don't buy the building, nor in the area.

That was when all the red flags started coming.

I would just find comparable parcels in the changed zone that have sold and use those.

OP that’s a local and propertySpecific question.Talk with your zoning group.  

Most of them are in a flood zone, but they didn't flood back in 1979 when most of the city was under water.  

Use the lookup for my list in zoning.