So now, VRBO has "restricted" all of the properties that we cancelled reservations for, in order to punish us.  

The safe harbor requires the Exchanger to have owned it for twenty-four months immediately before the exchange, and within each of those two 12-month periods the Exchanger must have 1) rented the unit at fair market rental for fourteen or more days, and 2) restricted personal use to the greater of fourteen days or ten percent of the number of days that it was rented at fair market rental within that 12-month period.

Hold firm.If you get nervous, drop the rent $100 per month or confirm your marketing is good.You do limit the prospective tenant base by restricting pets, but that is your prerogative.

Hi everyone,I'm looking to invest in short-term rentals in California but want to focus on markets that have a relatively smooth and less restrictive process for obtaining permits.

Some states may restrict closing in a personal name, however this would be a lender specific guideline. 

Limiting their options, and restricting their buy box.

When this Policy applies, guests can cancel their reservation and receive a refund, travel credit, and/or other consideration regardless of the reservation’s cancellation policy, and Hosts can cancel without fees or other adverse consequences, although their listing’s calendar will be blocked for the dates of the canceled reservation...What Events Are Covered...Government travel restrictions.

Like others mentioned above STR's have become quite tricky but mid-term is still fair game and not subject to the same restrictions.

Due to restrictions in funds I have only managed to till 20% of the land.

@Matthew Wright Check to make sure your town doesn’t have any zoning restrictions on how many units you can have in one building.