Whether you are a wholesaler or a realtor, it is your responsibility, especially for out of town buyers who cannot see the property in person and in these situations where you are not allowing inspections, to be very clear, thorough, honest, and forthcoming in your communications.

Already, it's pushed out-of-town investors to focus on student housing where GC has less of an impact.

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

I invest in college towns and resort towns mostly with a summer lake warm lakes and ski hill within 30 min with little to no vacancy. 

I called every bank in my town (9 I believe) and got one financial officer to admit this is exactly how this works.

@Thomas Polise has multiple STRs there, including one that is a four-plex in the middle of town.

Exploring FHA loans makes sense for a low down payment, but keep in mind the competitive market may require some flexibility.

Best bet is to carefully analyze the zoning maps and regulations or just call the town and ask.

Let me explore it ... 

Hey guys im looking at real estate in South America ,for the price of a studio here in the U.S there you can get a 3br +1000sqf house in nice area of town ready to move in, been pondering on getting a personal loan here in the U.S to invest in a house in SA, what banks are best for this type of loan, i would like a low interest and monthly payments.