This is true in most Colorado cities that have a similar provision in their vacation rental regulations. 

It’s brilliant, I just can’t work out the fine details because of my lack of knowledge on specifics on how mortgages are regulated.

I own a home that is rented by an Adult Family Group Home covered by a residential lease in my state due to our regulations.  

The regulations do not define "held for investment". 

It seems like every town I look in has such strict regulations where you need to owner occupy your unit. 

It's about finesse, freedom, and streamlining your investment flow.Know Your SDIRA PlaybookRules, regulations, and penalties – oh my!

But sellers typically prefer not to retain the buyer's contact information to facilitate a clean transition to the next transaction and avoid potential financial entanglements, It's essential for buyers to recognize that the original owner could reclaim ownership if the property was purchased from a title sale auction, with specific state regulations, such as a 2-year reclamation period in New York, Despite these factors, owner financing can benefit buyers by fostering a sense of connection with the seller.

@Elton Tate first, you need to understand the difference between loan fees and transaction fees.Areas E, F & G are outside EVERYONE's control and you'd pay all but G if you bought with cash.So, your Closing Costs are really only $5,932Now, $200 for a credit report is crazy unless they are pulling Dunn & Bradstreet on your LLC.Title charges, except for closing fee, are regulated by the State of Michigan Insurance Division.Why aren't you working with someone that knows all this?

There is typically a little more regulation with what can and can't be done in certain town homes.

Take into account variables like affordability, property taxes, rental regulations, and vacancy rates while doing in-depth market research to find viable investment areas.