I don't think he's ever actually even seen the house, if he did I don't know how he could have missed the Holton-Wise stickers on the doors, windows, cabinets, furnaces, hot water tanks and electrical panels.

When I first encountered this I took it to mean that they kept that % no matter what as a tax "just because they can".

I currently have the money to start an Airbnb arbitrage business but now that I’m ready to get started I’ve encountered some hurdles pertaining to short term rental restrictions.

Rather, their job is to conduct a reasonably thorough canvassing of the property, given the time allotted and the obstacles they encountered. 

@Barry Pekin as a newbie I find that unfortnately people are in such a hurry to sell their products that they dont tell you the ramifications you may encounter.

Jesus, with this one brief encounter with Zaccheus, shows us how the Lord treats the unlovable.

What kind of reactions did you encounter when approaching a private lender (seller financing) with the idea to substitute the collateral?

Get this right and buy good properties that you can get tenants that can pass a high standard tenant screening, will help ensure you will NOT encounter too many bumps in your road to achieve equity growth.Lastly, I did rent to one of my brothers, but I had explained to them that it's a business.

I did just encounter something along these lines with a cash out refi and the numbers made sense to maximize the financing.

Only way a residential vanilla Fannie type loan officer would know anything about this, is if they encountered it on the job before.