@Michael Penny   The buyer is the state itself, and there aren't necessarily any tests, though the state agency has been known to do so basically unannounced / unsolicited (if they get tipped off etc) particularly in the wetlands areas which they have greater regulatory jurisdiction over.

Property will not fail to be treated as being held in a QEAA merely because the accounting, regulatory, or state, local, or foreign tax treatment is different from that provided in the revenue procedure.Property is deemed to be held in a QEAA if all of the following requirements are met:a.

@Alan OuelletteThe reason I am wary of condos and don’t hold them as rentals myself is the regulatory risk.

There's little regulatory law beyond a couple private letter rulings. 

What regulatory barriers have you come across in such a urban market? 

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

It is making big investments in Bitcoin.In our terminal version of capitalism, the large corporations, through regulatory capture and monopoly trade practices, gobble up the competition.

Regulatory landscape: especially HOAs and Townships - these can be a deal breaker and shut your business4.

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.