It's also important to be aware of any deed restrictions or covenants that could impact your intended use of the property.A Personal Anecdote:I once assisted a client in Omaha who purchased a Freddie Mac home intending to convert it into a rental property.

Hi Joel,I am interested in start doing the same as you to be using it for medium term rental (28+ day stays) arbitrage in GTA (as short-term rental stays (less than 28 days) are restricted).

I sent you a private message.I don't restrict certain breeds, but you may want to consider it.

Borrowers are not allowed to complete any of the work themselves as sweat equity.Loan to Value Calculations:The original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.Purchase: For a purchase money transaction, the LTV is determined by dividing the loan amount by the lesser of the “as completed” appraised value of the property or the sum of the purchase price of the property and the total rehabilitation costs.Refinance Transactions: For a refinance transaction, the LTV is determined by dividing the original loan amount by the “as completed” appraised value of the property.Eligible Renovation:There are no required improvements or restrictions on the types of repairs allowed.

This isn’t 1979 where you’re restricted to properties “within a2 hour driving distance”.  

Zoning and Environmental restrictions can greatly effect the value of a property. 

@Rosa-Maria VictoriaDon’t foreigners have to use a bank trust in a restricted zone?

Having said that, the federal government put a restriction on buying houses if you don't live here. 

As others have said, you need to check the regs in the area you are looking to make sure STRs aren't severely restricted.

As you know, we generally don't have such restrictions in Canada so I personally tend to look first at the environmental issues my own backyard before.