It's worth mentioning the STR regulations are relatively new, and I think some properties currently operating are basically grand-fathered with the old permit, and I don't know if being a new owner one'd be able to get a new permit if it's not in the designated location.

Do you have that information based on experience and knowledge of banking policy or is there any law/regulation about it?

They’ll check if your property, zoned R5, allows a curb cut and ensure it meets zoning regulations.

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

Seacoast NH, for example, has some great potential with short-term rental markets (Airbnb, VRBO), especially in towns like Portsmouth or Hampton, but the regulations can be a bit tricky.

This story has the potential to usher in a boatload of regulation into, and scare a whole lot of money out of, the turn key industry. 

Distributions from a regulation d fund like this should be treated as passive income and therefore not be exposed to self-employment tax.

One tip: focus on areas with year-round demand and check local regulations early—they can make or break a deal. 

One that may not be rebuild able under current regulations.

Depending on local regulations, you can mix up STR/MTR/LTR. 2) Get systems in place in those exact cities; 2 PMs preferably via NARPM, 2 high quality inspectors, and rotating book of handyman, 1 lawyer, and a credit union contact for leverage along with investor friendly nationwide lenders.