Starting on page 90 there are references to existing zoning, which don't have ADU dimensions, and proposed zoning, which does reference setbacks, heights, etc.

A legitimate hardship for example is that the lot is now undersized and the set backs increased and you cannot build anything unless you get a variance.

Find your setbacks. 

Paul, MN, requires an additional county inspection when buying or selling, emphasizing the need for local regulatory knowledge.

Banks/Lenders use a theory that if an investor encounters a loss be it in income, death, divorce, major sickness, or any other set back they are more likely to let their 2nd lien positions go in default before a 1st lien.Reason why I say this is although you have a great rate on the first mortgage you need to let it go and do a "Cash out refinance".

Are there any regulatory restrictions preventing sponsors from directly selling theirs DST?

This does help me get a better understanding of the regulatory/financial constraints regarding STR.  

But the best way to get them to make recommendations and/or put you in a position to lead the pack is to successfully close a deal or 2 with them without issues or setbacks.

Despite the setback, Partner Driven remains committed to navigating challenges and ensuring successful outcomes for our partners.

Anyone interested in STR needs to add regulatory acceptance to their due diligence.