Our project is in central Colorado and I agree, it's a lengthy process of hoops and county/state requirements.

I wrote a pretty lengthy article about this HERE I wrote it with the intent of showing an alternative to buying with cash and facing the delayed financing rule but it's exactly what you are speaking on.

Are there any lengthy contracts with Section 8 regarding the building? 

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter. 

We felt the property was ONLY good for that purpose, which may or may not be a good thing, but for us, it was not really what we were looking for.We did find out that not all properties in that area can legally be run as vacation rentals, it has to to be permitted for that, and from what I was told, getting that permit for a home that does not already have it can be a lengthy process.  

Is it arms length? Is

I'm overdue for a trip to one of the monthly meetings so I hope to see you soon.

And then the lender puts on a VERY expensive forced place policy.With a lengthy rehab, better to buy an "empty house" or "builder's risk" policy than an ordinary landlord policy.

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter. 

Abel, Sherman, I highly appreciate y'all taking the time write such lengthy and helpful posts.