@David S RobertsI'd venture to say those nearby properties are just ignoring the law.Most cities and counties in Colorado have well-defined STR requirements, and if you meet those, then you can operate a vacation rental. 

I remember in the 80's when my high school Geography teacher would try to scare us to death, saying that the pollution in LA and New York were so bad that people would die.   

I suspect the new title examiner has found something in the chain of title or the execution and notarization of your deed that makes them unwilling to rely on it to issue your buyer a policy without exception for the concern(s). 

@Trevor WilcoxIn order to get a line of credit the lender will need to secure / collateralize it against existing asset(s).

Today you might save 7% annually plus 1%+ on day 1 with origination and if there’s any chance to get even a 1/4th point lower rate with 25% down you’d be getting another 3/4’s of a % on your down payment.

This is typically raised from investors and it's used to close on deals and to operate the asset(s) after closing. 

You'd likely be looking at rates in the low to mid8's depending on your credit score if you were to go with the 15% down.The higher LTV loans can be found in bridge loans and rehab loans since they are short term and often the value of the property increases so lenders can scale off the ARV.

I guarantee if you do that, yes, you will got some seller financed buys, i bet you could get some sub-2's. 

I think it’s worth noting that when you mention a city, a lot of us get hit with a “keyword” notification and the way BP has gotten often that turns into “selling” you our market(s).

The inspector pointed out structural issues, potential plumbing issues (hard to confirm since the water was not on but scary enough) since the house was built in the early 1900's.