If you do budget that much, the you will easily hit your profit target.There are currently no restrictions in Lewis county and STRs work there, but there is always discussion on them by the city.

It should be noted that the cases were prosecuted against companies that owned and sold thousands of properties nationwide, not against small time operators, but anyone who attempts to follow the model is better off hiring a well versed in the subject matter attorney and be aware of state specific restrictions (like in NY, Wisconsin and others) on Deed for Contract agreements.  

@Jeet Sangha You need to sign a Deed Restriction for Owner-Occupancy.

Focus on locations with strong population growth, growing or stable job markets, low operating costs, and no rent control restrictions.

I remember a buddy who once represented a client in the Santa Cruz Mountains.. this client turned an old barn into a shared art studio and invited local artists to rent the space, which ended up boosting inccome in ways they never imagined.The Redwood market can be tricky because of environmental restrictions, zoning quirks, and limited inventory.

I’m conservative by nature, and would never be comfortable overlooking this restriction.  

The restrictions vary by location, but they can impact guest satisfaction and demand.

California is the only state that has essentially put a rent control type of restriction on home owner insurance premiums.

Many now and for many years now have had restrictions on rentals. 

At a minimum,  you should understand what the current zoning is and what restrictions there are.As the post above mentioned reaching out or going in person to speak with the planning and zoning department will be very helpful.