If you do, you will find that it's hotels and the hotel industry that's pushing for these crackdowns because they don't like the competition.  

to me this depends on your risk tolerance & how proactive you want to be.If the police are researching, my 1st thought is hopefully they'll crack down on her, but I'm not sure if you have any ownership of tge problem. 

Locals say they would never crack down on these illegal units but ther Oahu government just cracked down on short term vacation rentals, they could do the same on monster houses.

Lots of cities that have S@H orders set them to expire in May or were open ended.In LA they are trying to crack down on people flouting the order.

I'm not saying that their aren't funds out there that will take your money under these conditions, it is a new rule after all and it's possible the regulators never crack down on it, but I can tell you having raised money under reg D, that if an investor didn't check the net worth/income boxes but says they passed the 65, I would look them up on broker check and very quickly realize they aren't actually an RIA or a registered rep.  

From what I know, it sounds like a lot of in your face prostitution going on....some of the stories were pretty funny but they are trying to crack down on that.  

Even currently in Texas it sounds like you're trying to be an unlicensed broker/agent and they crack down pretty hard on people here trying to do that.What is your process of investing?   

Additionally, it's probably just a matter of time before cities and counties seriously crack down on short term vacation rentals.

@Dena Puliatti - is the City of Huntsville finally starting to crack down on STRs? 

I am exploring the option of a vacation rental property which will bring in much higher revenue, even if it is only rented out 50% of the time, but Costa Mesa currently does not allow short term rentals and is getting ready to crack down hard on this over the next few months.