I have been through this personally and have had clients go through this and it gets very sticky and costly. 

This can be a sticky subject because though most hosts follow all rules and regulations set forth for their city and try to be respectable neighbors,I can also see how a complaining neighbor can make or break your STR investment.

@Justen Johnson that situation can get really sticky.

But the proper measuring stick is not what happened this week.

Where it would get sticky real quick is if you got an FHA primary residence loan on a property you never lived in and then a year later wanted to 1031 it. 

So it’s sticky tile?

Without the proper training, you may find yourself in some sticky situations.

That DTI dropoff is why you don't really see people that can get loans for $775k or $525k, they either stop at $760k/$510k, or they blow right past it all the way to $900k/$600k.So price points can (& here in the East Bay I feel like they have) hit a "price stickiness" and start to see an uphill climb right around price points that yield a loan amount right in the line in the sand between "conforming" (49% DTI per "qm patch") and "jumbo" ("qm patch" does not apply, 43% is firm and by law).$765,600 in the Bay Area yields a purchase price of $805k with 5% down, $850k with 10% down.

I do feel bad for her and she's very nice but I am also not running a charity.What makes it sticky is I live next door and see her all the time.

(inherited lease/tenants from when we recently purchased the property) There's only one or 2 people actually spending the night and therefore "occupants" but all day, every day (or the majority of days) there's closer to 6-10 people that are occupying the unit.Probably a sticky situation legally where a landlord CAN limit occupancy but since they aren't spending the night... are they technically classified as "occupants"?