I am looking to build my portfolio for cash flow through MTRs and STRs - I run a STR management company as my job.

If anything that might restrict building but I don't see them running out of water for existing homes so wouldn't that mean home values going up because supply would be restricted.What kind of climate risk could occur there?

Trying to do renos with someone living there will only cause problems: long to get renos done, disruption for the tenant and more expensive in the long run. 

.), I personally don't like properties with HOAs if your plan is to run them as STRs.  

Run your own race.

You know who almost never succeeds in running their own business?

If they violate it again, demand they remove the animal or terminate the lease and leave.Assistance animals are not allowed to damage the home, poop in public spaces, run loose, intimidate or attack others, etc.

I have worked with many lenders that will give you the run around, ask for more items, with no clear cut guidelines. 

I have seen to many beginners do the sub to no equity transactions only to end up in a mess of trouble.. they rent the house out tenant does not pay and after a few months the investor runs out of cash to make the payments then it goes downhill from there.

You have to run the numbers, watch out for saturation and unfavorable rules.