The clause being referenced is the Marketing clause, which essentially grants the Buyer the right to assign and market its contract interest in the Property at Buyer's sole discretion.

A large percentage of investors are managing them improperly, typically marketing and operating them like short-term rentals without realizing they are long-term rentals and long-term rental laws apply.I'm just trying to keep people from getting themselves into a pickle, but the masses don't seem to care.

Firstly, inquire about upfront fees, as reputable lenders typically do not charge them, and collects all fee's at closing.

Typically the total loan will be capped at 65%-70% of the after repair value.

Typically Airbnb will blame your software and vice versa. 

Essentially what I took away from her explanation was, a lot of owners don’t want to fool with the county on things like this if they don’t have to, which I can understand.

A typical move would be to sell our house and go purchase a home.

Typically as someone gets older their tolerance for BS is far less.If I could sell an asset even for less $ and invest it passively at a lower risk than seller finance it to an overleveraged borrower with poor credit there is really no choice to be made in my mind. 

Most bidders on there don't have an interest in a quick flip, they typically plan on fixing up and holding or re-selling.

You could certainly "be in the right" regarding getting screwed over by the builder but this is a situation that is going to be very very risk for a hard money lender - typically stay away from unfinished rehabs/builds due to running out of money.Your best bet I would say is to find a local private money partner (maybe as more of an equity investor) or to try to finish one first and then re-evaluate, instead of trying to borrow for rehab on both