The main reason tiny homes haven't taken off is because of the regulatory "gray zone" they currently exist in.

I went through the process to set this up in CA and you have an extra page or two (depending on font size) and the meters need to be tested every ten years-I.e. this is likely the most difficult regulatory burden you would encounter.

https://www.colliercountyfl.gov/government/growth-management/divisions/operations-regulatory-management/short-term-vacation-rental-registration Must get a DBPR License if renting more than 3 times a year for less than 30 days each. https://www.myfloridalicense.com/intentions2.asp?

The latest quarterly report repeats many of the same themes from the previous report conducted in March.Bibby added in his prepared statement that the industry was also seeing regulatory barriers and rampant NIMBYism that was contributing to the construction delays.

I lend out my own personal capital, so much few regulatory hurdles to jump through. 

Hi Bob,Chicago resident here and I am involved in the regulatory side of things so I would point you to the city’s Fair Notice ordinance passed in 2020.

When the home was sold after 9 months, the lender loses money, the lender's investors lose the monthly income, and your specific deal will command more scrutiny by auditors at both the lenders institution and the regulatory compliance agencies. 

There remains a far greater variance between lenders with 2nd homes and investment properties, than there is variance for primary residences, since regulatory uncertainty is obviously going to lead to private sector actors tacking drastically different courses.

The former seems like a material fix while the latter is regulatory which sounds like a major issue. 

Read every regulatory agreement and deeply understand what you sign.On the good side- many cheaper loans available, tax benefits, feel good that you provide safe housing for low income and people at risk, hopefully prior owner kept subject in excellent condition with security measures?