There are some restrictions for trying to use VA benefits on a second property based off the entitlement. 

It sounds like he believes CAP rates have a significant chance of going higher still given most likely conditions.Hospitality can be highly risky as some asset types can be heavily affected by a recession and corporate travel restrictions. 

In that realm of mortgages, there is a restriction on pricing being compliant, and that is typically 3 points in total that can be charged to a buyer. 

Yeah, the shape restrictions are why I've moved away from murphy beds.

Know what you're getting into beforehand and know that things could change over time to become less favorable to STRs.At the state level, there are currently no restrictions on STRs, but that could change.

I decided that I wanted to take advantage of this benefit by buying a property to eventually rent out (after meeting the 1 year primary residence restrictions).

Unfortunately, I did not verify the information provided by my agent regarding HOA restrictions and home insurance costs.

Make sure you thoroughly read the CC&R's because many also have restrictions on rental (% of owners that can rent, length of term, approval prior to,no short term, etc.).

Your target, from what you wrote, would be cheaper renters looking for a value stay that is clean, but unspectacular.If you market is saturated, you will keep going lower and lower in the algorithm which will indirectly restrict booking.

Seems very restrictive and would deter a lot of guests.