Does this mean they're technically violating lending rules/regulations by not informing the lender that the property will be sourced as a rent-by-the-room asset? 

It's also illegal for cities to attempt to regulate fees related to screening or applications.

The majority of states have NOT enacted any rules, regulations or legislation that has altered the “wholesaling” landscape.  

I was recently looking into wholesaling in PA around the Wilkes-Barre area and was wondering about the overall laws and regulations.

If a wholeseller is really thriving, they need access to OPM. that is why there are thousands of transactional lending groups because the demand is there. and with regulations changing, this will become more relevant. 

Norfolk is pretty loose on regulations, but fewer areas are desirable, and Virginia Beach has very specific locations that can be STR (Sandbridge and The Resort District).

Ensure it cash flows comfortably.Market & Location: Research local rental demand, property values, and any applicable LTR regulations to understand the area’s potential for long-term success.Future Potential: Consider if the property could appreciate or attract quality tenants over time, supporting stable cash flow and asset growth.This checklist should set you up for a solid LTR investment!

Here is the rule from the IRS regarding length of stay for short term rentals:As defined by Treasury Regulation Sec. 1.469-1T(e)(3)(ii)(A)The average period of customer use is 7 days or lessThe average period of customer use is 30 days or less.

However, based on regulations, only Seattle and San Jose allows you to have two separate parcel numbers.

But all of these investments operate under highly regulated and constrained exemptions to securities law, and I have been told it is very difficult to do the above legally.