This seems to be a fairly common topic, but I'm curious what laws and regulations make what states more landlord friendly.

Agreeing with @Mike Lambert here that we need to have in mind that the Spanish mortgage market has been regulated more since '07/'08 and that it is normal here to pay down on deals.

I completely agree that CA is a heavily regulated state and I’d much rather do everything by the book!

Maybe in over taxed and regulated areas like California where many people are moving away from. 

We are planning on using someone local to make sure all applicable laws and regulations are followed as we understand this is not a generic transaction.

Don't forget to research local regulations surrounding MTRs and STRs, factor in management fees if you plan on outsourcing, and assess your risk tolerance between a larger, single multi-family property or multiple, potentially distant, MTR/STRs.

The rental agreements between the owner and the renter must mandate language by the city.Lastly, the owner or agent must be available by telephone twenty-four (24) hours a day, seven (7) days a week, to respond to police, fire, or other emergency personnel requests.City of Bradenton BeachThe City of Bradenton Beach allows short-term residential or vacation rentals, but the owner must obtain a permit or license from the Division of Hotels and Restaurants of the Department of Business and Professional Regulation, which is very similar to the Anna Maria requirements for the application of license as set forth above.

@Carol D.They are a regulation a+ offering so they will be required to report bi annually the financials to the SEC and you can see financial strength of the company.Just remember most companies may issue distributions but are not profitable the first few years due to high startup costs for a company

I haven't researched it much but I tend to see a fair amount of listings for this type of home and am just interested if there are any regulations, rules, red flags I should know about if I decide to pursue this niche.

I think the city in TX would also develop much faster than CA because TX has more relaxing regulations to build houses.