In my state, HOAs don't have the legal right to regulate property use.

Building on a lake requires experience with the locale and building regulations.

For the reasons previously mentioned.The closing attorney did not answer the question I had about what to do if an investor buys using Subject To, sells on a wrap and there is no equity (as you rightfully say, the current crop of investors believe to be okay to do) We shall see as they fail, in Subject To's that are bought over leveraged, or sold on wraps, what course of action the investors will attempt, in order to try to avoid the DOS and what response the regulators will have.

Check local and state regulations and what might be coming soon for building standards and regulations for a RCFE.

U will get in trouble if this is brought to light to a regulator at the department of corporate securities.. 

With the discovery of Nashville many investors moved into STRs and so the growing number of units called for the regulation of the industry as a whole.

But I cannot find a regulation or law anywhere compelling this. 

Entirely different class and many rules and regulations will have to be followed to maintain commercial units.

While I understand regulations may vary by condo association, I'm also wondering if there are general restrictions on operating Airbnb in the area. 

Six Areas of Focus:Florence OR - Proposed regulation but nothing formal yet..within city limits properties are eligible for STR usages with a business license to remit local occupancy taxes.