An LA times article indicates that it is more pervasive and less restrictive than what is already currently available.

Third, as suggested, there may now be restrictions on double closes in some states.The most innovative way to wholesale is with disposable LLC's, where you create LLC's for the purposes of making offers under.

This is the 2 units + 2 ADUs scenario.I am worried Scenario A might push future financing option into commercial real estate only, which will limit my cashout refi options and the future buyer pool.From a lending perspective, since a "Land Use Restriction" is required to be recorded on the Deed to limit rentals to be longer than 30 days, the property thus will not be considered a true "5 unit commercial property" and my worries in Scenario A will not come to pass, right?

Buy and Hold: Norfolk (Best Cashflow Potential), VB (Townhomes tend to work well, Green Run is a great area for cashflow), Chesapeake, Newport News, Suffolk (Less Military presence which is why i would put last.)STR: VB (in the proper zones if you have the money $850K+), Norfolk(Ocean View area specifically but have to watch out for the AICUZ restrictions), Leave the restPart of that decision process is distance to that I would need to travel to deal with rehabs, I hate dealing with the tunnels so I would almost always pick places on the peninsula last since I am based in Chesapeake.

Down payments were higher, as you note, but more so these loans will typically have a DSCR restriction too.  

Also study up on lease renewal restrictions and eviction costs in CA and LA or wherever you are buying. 

All bids are to be based on the bidder’s own information and knowledge of the property, learned through his or her own efforts, and not on any representation or comments made by the Committee.The property is being sold free and clear of the lien(s) being foreclosed, and of all interests subsequent in right to that lien.The property is being sold subject to:All taxes due the municipality not foreclosed by this action,Water and sewer use charges not foreclosed by this action,All building and zoning regulations of the municipality which affect this property,All building lines, easements, restrictions and all other matters concerning this property which appear of record,The rights of any person in possession or occupancy of the property who have not been made parties to this foreclosure action,The right of the United States of America to redeem the property, if applicable under Federal law,Any other liens on this property which have not been foreclosed by this action.Further description of the property and further terms of the sale may be obtained from the Committee or from the court file.

Is it in an area with strong restrictions?

I think part of that is they keep the facility in good shape in part by restricting what people can do to it.I can see getting dinged for a crappy looking thermostat, but as long as the place gets warm when you turn it up, I think they'll be happy.

I recommend to my investor clients to make sure the property would still work as a long term rental in case additional restrictions are put in place against STRs.