Quote from @John Underwood: LOLI'm certain they will add restrictions to prevent people from doing this.

Make sure you understand the auction process and are prepared for any unseen issues with the property.Auction Considerations: With auctions, pay close attention to the condition of the property, title issues, and financing restrictions.

Homeroom does lean towards suburban out of downtown houses (as you said, more space, less restrictions) for their investments, which ironically is the antithesis of where 20 to 30 year old student/young professionals want to live. 

Hard money lenders are much more like banks and come with many restrictions, requirements, due diligence, fees, etc.

I also advocate using the 95% LTV versus the more restrictive 96.5% FHA LTV.

While no formal laws say this is restricted, we are getting notices saying the request is not feasible due to XYZ concerns.

Go to the city and county of your prospective STR and ask for the deed restrictions and/or municipal code, for the specific property.

These are primarily found in cities with a metro population >1M.Pro-business environment: Many cities treat employers as adversaries through restrictive policies.

Yup City of Alexandria, not to be confused with Alexandria Fairfax County, is pretty much the only place you can STR in the metro are without restrictions.

At a minimum,  you should understand what the current zoning is and what restrictions there are.As the post above mentioned reaching out or going in person to speak with the planning and zoning department will be very helpful.