Double-check local regulations, but you’re likely fine without one.This post does not create a CPA-Client relationship.

Still learning to use this platform:) To answer your question, I would like to stay clear of the metro and national fly to markets due to their volatile ST regulation structure. 

It is helpful to know that many HOA’s don’t allow STRs…I am also trying to source information about the STR regulations in this area to target the right small house.  

However, structuring this in a way that complies with tax law would likely require expert legal and tax guidance, as it involves partnership agreements and IRS regulations.

Plan your house hack by running cash flow estimates, checking rental regulations, and planning for FHA or Conventional loans.

However dependent upon taxable income you could get away with a pretty low tax bill due to favorable capital gains tax rates.Be sure to work with a qualified intermediary and a tax professional to ensure you comply with all 1031 exchange regulations and to be sure you keep basis correct as all a 1031 does is defer your gain.Happy to help run some numbers or do some basic analysis for you if you would like. 

They are either already under regulation and scrutiny, are they will be too expensive for you to make a good profit in. 

I am aware of certain zoning and regulations but am looking to further my knowledge before potentially venturing deeper.

Coastal NC can be a great market, but it’s important to research local regulations on STRs since some areas have restrictions or require permits.

Local Regulations: How do local landlord-tenant laws, rent control policies, or other regulations affect investment profitability?