Is this possible or is there regulation against it?

However, the challenge with short-term rental is all the HOA regulations prohibiting rentals fewer than 30 days.Heres my question: What is your opinion on the best route to go for house hacking in this market given the constraints?

Remember at the end of the day the banks are told what to do by regulators at the state and federal level they may love you but they may have to take orders from on high. 

You need to figure out how to now fix that mistake.If you have not already done so you need to study/learn all your state landlord tenant regulations....NOW

The correct next step is to download your local landlord/tenant regulations and read them front to back.

There is very little short term rentals as Clark county banned it, Las Vegas heavily regulated it, and everyone assumes North Las Vegas will follow. 

I did property management in CA (years back) and I remember there was no rules or regulations.

Start with local regulations.

The term "material amendment" as used herein shall be defined to mean additions or amendments to provisions of these Bylaws which-establish, provide for govern, or regulate any of the following:  (a) voting; (b) assessments, assessment liens, or subordination of such liens; (c) reserves for maintenance, repair and replacement of Common Elements; (d) insurance or fidelity bonds; (e) rights to use of the Common Elements; (f) responsibility for maintenance repair of the several portions of the Property; (g) expansion or contraction of the Property, or the addition, annexation or withdrawal of property to or from the Property; (h) boundaries of any Unit; (i) the interests in the Common Elements:

You keep it for the time specified in your state landlord regulations surrounding "abandoned property".