I would generally rent to them even if they are a little bit short on rent to income. 

Quote from @Andrea Wellman: Would like to invest in short term rentals to start and learn from this forum and experts.  

My specialty as an example is working with investors looking to build portfolios of Short Term Rental/ luxury vacation properties all across the US.  90% of my clients use the 10% down second home occupancy loan.  

Quote from @Nate Marshall: Quote from @Robert Short: This is my concern as well.

It's not just shorter-term downturns to be aware of, real estate just like the stock market can experience 10 year periods of no growth. https://fred.stlouisfed.org/series/csushpinsa

The bullet in the response that is standing out to me is:"(7) The accessory dwelling shall not be a short-term residential rental, as defined by City Code section 3-2-152(a)(2), for a period exceeding 120 days per calendar year."

Update: It looks like the county has appointed an 11 person short term rental committee to review the work, investigate more, and provide a recommendation and will be disbanded by November 30th. 

The only issue with seller finance and resale is if they don't want to receive a payoff in short order, then they should include a pre-payment penalty. 

@Derek FarmerDerek - My friend Dave Short has a Dinner with Dave meeting about once a month here in Indy.

Short term rentals are a lot of work.