It's a lose lose bro.

I've heard too many stories of investors purchasing homes for STR use, only to find that they lose their permit or the ability to transfer it when they sell.

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Quote from @Dan Mcguire: One reason not to invest, is not to lose money.

We need to close in 1 week and worst case I may need to buy all cash and refi to a different lender losing my property inspection fee the lender charged.Is this a townhouse or condo?

Most of these folks don't want to lose their voucher.Additional issue, when rent is too high, it slows down leasing. 

As long as I do not lose money I think I'll be ok with that.

Let’s say with your plan they make an extra $100 or $200 in fees and you lose $1000 or $2,000 in bookings.

You may lose 1% (in expectation) from being out of the stock and/or RE markets for those few months, but that's less than you are going to lose making a hasty decision.

Lose the holier than thou attitude; this is personal finance not a religion3.