The final wild card is government regulation and how it could affect the investment.

It is the worst because you need to understand the patchwork of regulations across the state, which can vary down to a neighborhood by neighborhood basis.

The regulations around what properties you can add Tiny homes too was cumbersome.  

Ramsha - most of the regulation for a STR is controlled by the neighborhood HOA.

And the numbers are pretty good on the projects I've looked at. these are the very recent regulation that's from what I read, it makes more sense to add ADU into small MF.

I didn't even think to check my local govt on the regulations about rental property.

However, strict IRS regulations apply, including prohibited personal use and mandatory income and expense management through the IRA, with penalties for violations.

I find trying to slog my way through government regulations to be a bit overwhelming.

Quote from @Radhika Srinivasan: :) Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK,  Cleveland, TN and Ownsboroo, KYRental regulations in Ohio can vary a lot from city to city, with Cleveland being the most heavily regulated.

Just want to get a little more knowledge on the STR in Cape Coral, any STR - regulations that are investor friendly?