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

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.

New rent control laws and regulations, such as the ones in Oregon, can decrease revenue generation for investors.

You do have policy and procedures in place?

I am curious regarding local regulations on STRs and if there are any cities in Skagit Co that have stricter rules in place.

Lending is a highly regulated, complicated endeavor, and it's important to know all the requirements for licensing, etc.

Price it out so that if the STR is too much work or regulations change, that it still makes sense. 

Request they backdate the tax adjustment to the date FEMA regulations implemented by the City.Be prepared for the process to take many months.

The legislature must provide, by law, for: (1) interest on the delinquent taxes and other impositions not to exceed 1% per month on a non-compounding basis; (2) a penalty not to exceed 5% of the delinquent taxes and other impositions; (3) a period of time during which the lien cannot be enforced; (4) a procedure for claiming the excess proceeds from the sale of the property as a result of the enforcement of the lien; and (5) the authority of the tax collector to waive penalties for good cause.

However, I discovered that Anaheim isn't allowing new short-term rentals and that the strict regulations in California make arbitrage nearly impossible.I then came across the assignment of contracts strategy and thought it could be a good way to generate income.