I didnt realize there were so many restrictions in Oceanside/Carlsbad.  

As with most municipalities and jurisdictions, the evolution of the AirBnB market has spawned regulation and restrictions on where, when and how a STR can operate.

What are the pros and cons of each, and which offers the least restrictions, flexibility and cost savings for my intended purposes?

There are rules to follow!

Make sure to have clear rules in place.

There are no laws restricting mark-to-market rents. 

I know the restrictions are pretty strict for STR’s but was wondering if it’s the same level of regulation for arbitrage.

Is the number of licenses limited or restricted?

They have taken strides to pave the way for ADUs - here’s the implications for real estate investors.It's crucial to understand Raleigh’s zoning rules for ADUs BEFORE deciding to implement this strategy on your current or future long term rental, Airbnb, student housing, MTR, house hack, flip, etc.

Focus on locations with strong population growth, growing or stable job markets, low operating costs, and no rent control restrictions.