In addition to what you've said, many tertiary markets throughout the US are shrinking in population or are heavily dependent on one industry.

As such there is no way to capitalize any of the additional income.WASHINGTON—Getting a mortgage for a resort-area condo might become more difficult after Fannie Mae FNMA -5.42% and Freddie Mac FMCC -6.60% moved to tighten rules on buildings with many short-term rentals and hotel-like amenities, some Realtors and bankers say.Fannie Mae last month changed its rules to make it clearer that it won’t back certain loans in high-rent vacation areas, with Freddie Mac taking similar steps that go into effect next month.The moves by the two government-controlled mortgage giants come as the Trump administration seeks to shrink their footprint in housing, especially in areas such as vacation properties that may not serve the core mission of encouraging homeownership by making it more affordable.The updated rules, which went into effect Dec. 7 for Fannie, are starting to generate pushback from Realtors and bankers who say entire buildings could be ineligible for financing even if only some units are rented out on a short-term basis.They also fault the process Fannie uses to determine the eligibility of a building, saying it is opaque and can’t be disputed by a building’s owners or its homeowners association.

I review several dozen leases a year and they are all unique situations.Look at tenant financials, history of rental payments, is their business growing or shrinking?

I have a local community bank I have been working with and they understand our local market (relatively depressed, shrinking) hence they are more open to financing MH's on a commercial loan basis rather than conventional finance.

Nevertheless, the total number of homes available for sale (i.e. inventory) continues to shrink.

It's just as likely that the market as a whole shrinks and prices stay right where they are, than everyone panics and starts trying to sell.

Based on my experience from the BRRRR I just (mostly) finished... in process of the refi now.Washer / Dryer - Originally, the house had side by side units, but I moved a wall, shrinking laundry room floor space.

-It could take months before you find something and close, so your 12 month window to move shrinks unless the thought is whatever you buy, you stay for a year starting at that point.

With that small of a town and a shrinking population, my guess is that future appreciation will be non-existent. 

I'd agree that if you restrict pets you'll be shrinking your tenant pool.