It's an area I don't actively recommend STR as it does have usage limitations (duration restrictions between guests) but it's primarily a second home getaway and will transition to full time vacation rental down the line.

I think that's we narrowed it down too but understanding restrictions are a bit confusing.

While I agree that the tenant who shot a hole in your floor should be responsible for the damages, if I was the tenant below, I would want to leave, not attend a party with the person who literally could have killed me due to their incredible gross negligence.Pending legal restrictions, this would be the end of my wanting the business of the upstairs tenant.

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. 

I've made the mistake in the past of going by self-imposed assumptions but a lot of times they turned out to be false.

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.

AB1482 says:“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code.