If you live in an area with caps on rent increases, it is so important to increase it every year or you will find yourself well below market values with long term tenants. 

Now i am capped at the rent increases i can provide to encourage them to give notice (one reason it is important to keep rent near market rent) and i no longer have the option to not renew their lease.there is a reason spa very large percentage of economists are anti rent control.

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Every area has a max or cap, and you don't want to go over that.

Others have caps on how many nights a property can be rented or outright bans on certain types of rentals.

Expect rates to be higher with CLTV capped at 70%. 

(I’m ignoring any extra cap-x because you said it was a condo, but you’d also add any major cap-x to cost basis).

$500 per day penalty up to $10,000 and up to 2 years in prison for willful evasion per entityNo cap on the amount of entity penaltiesCheck with your CPA, Tax Advisor or attorney on this as it is a freight train of compliance coming!

From what I've been reading, cap rate is not a reliable metric for STRs.

I have a similar product in NE GA, turnkey, going in 9 cap.