Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

I generally understood the explanation before hand and again, ignoring property values, interest rates and micro-market climates makes sense because they cloud the math (i.e. - don't sell in a down market, don't refinance into a higher rate, etc.).

However, they could still limit STR use by enforcing existing zoning laws that, for example, might not allow a "commercial operations" like an STR in neighborhoods with specific zoning.This is one of the more detailed explanations I found on the subject.https://canons.sog.unc.edu/202...

This may be one of the best explanations of how it works that I have ever read!  

Bryan, thank you so much for the detailed explanation, this is why I love asking here and find people like you.

@Nathan Gesner is right on the money with his explanations of how and why the Additional Interest & Additional Insured endorsement is used. 

Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

I am new, and I hope my choppy explanation offers some help.

Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

“More valuable homes are likely to cash flow less, if at all, than lower value homes”I hear this repeated a lot and haven’t yet heard or found the explanation.