A blatant violation of free trade, price fixing and fair trade issues, and Fannie Mae is not a regulatory authority, they can only make guidleines for members, originators, sellers and buyers of mortgages acting within the scope of thier conduit activities.

I think another consideration is the regulatory reliability.

Some ideas from others:• bank loans are not available on some types of properties • the tight lending climate has made bank financing "out of reach" for many • seller financing is an "age old" tradition based on private property rights • these rules would prohibit even partial seller financing - i.e. a "seller second" • according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear • an estimated 6 million Americans own a property other than their own primary residence • an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing • approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventoryThe continued success of our industry as we know it is threatened by these proposed regulatory changes.

And yes, understanding the local regulatory landscape is huge. 

There is a legal difference and a regulatory difference.

No conventional lender makes a pure purchase money loan without proof of funds, it's a legal requirement under several regulatory angles, money laundering, drug money or illegal activities etc. with funds needing to be verified as to the source of funds or held for more than 90 days.

Some areas have a lot of regulatory bias against STRs.

✅ Low operating costs ✅ Pro-business city / state regulatory environment ✅ Low crime rate ✅ No rent control of any kind ✅ Sufficient population to have economic stability, major highways, and a major airport. ✅ Low risk of a natural disasterIncome ReliabilityThe reliability of your income depends on the tenant who occupies your property and their job.

Over a year later due to regulatory challenges, we are finally laying the foundation.

But only after waiting the seller out,,, sometimes 6 months or longer.45 pads x $180 lot rent a month x 12 x (expense ratio see bellow) = NOI  / cap rate = offerExpense ratio is no less than 50% for 100% park owned homes, as low as 30% for 100% lot rent and city utilities.so:45 x 180 x 12 x .7 = 68040 / 0.14 = $486k I adjusted the offer price re the high risk for lagoon and well in the cap rate offered.I'd only offer if there are NO issues at the city, county and state regulatory and those gov executive branches (elected commissioners, state reps, city mayor and board) plus of course the carreer regulators in the various inspector and permitting offices.