However, private financing options are becoming increasingly popular for scaling portfolios.Zoning and restrictions: As you mentioned, regulations for short-term rentals, such as Airbnb, vary significantly.

NOPE  these are not federally or state regulated loans or lenders they owe u NOTHING.

However, if they are still considered a short-term guest under lodging rules, you may have more flexibility, though the specifics can depend on local regulations in Seattle.Since this can become a legal gray area, I recommend documenting all agreements, payments, and communication with the guest.

Also check if there are any boarding house regulations in your area that would impact you. 

There are markets that have built in "gotchas" like the rising cost of insurance in coastal FL, regulations in much of the west coast states and property taxes in Texas; however, the deal itself is the most critical factor.

PA is super regulated state and not a state i recommend doing seller financing in.

Ensure you understand local regulations regarding permits; it’s usually a good idea for your associates to form an LLC for liability protection, but individuals can do renovations as long as they pull the necessary permits.

It's worth mentioning the STR regulations are relatively new, and I think some properties currently operating are basically grand-fathered with the old permit, and I don't know if being a new owner one'd be able to get a new permit if it's not in the designated location.

>If you rent that out without a true Certificate of Occupancy, a tenant can sue you for ALL of their rent money back. show me any law/regulation that states this.  

Too many rules and regulations.