Anaheim is a great location if you can get a short term rental permit

I'd never buy a development unless I was confident in the valuation and there was data to back the feasibility of the build. having preliminary approval is very different than permit ready where you can put a shovel in the ground day one.

Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement. 

The other 75% of the skills required to be a good developer will have to be learned elsewhere (a good mentor is the best way).These include everything from Zoning/Subdivision/Land Issues to Environmental Issues to Permitting Nuances to Design Issues, plus all the differences in financial analysis.

I am considering $300 night rate with 60% occupancy which translates to $65k revenue per year from each A-frameAfter considering expenses $50k for each A-frame or $100k for 2 frames.I have some questions about this strategy:Did you try to get STR permit/construction permits in this area?

You know the next similar infill lot + builder(even at scale) likely can't beat $375k to recreate.

Some folks told me that I should try to get everything permitted, but now the city is trying to shut the entire thing down saying only single family is allowed in this city.

There's still limited inventory (~1 month supply) and limited new permits.

Everything was permitted correctly and done by the book. 

At a minimum, the lease needs to state that only SHE is the tenant and no other occupants are permitted without permission.