And there are strict loan covenants  that require doing on going work with Naca  deed restrictions on when you can sell etc etc. 

A couple of questions, although several have already been answered on this forum...Is it worth shopping around for multiple lenders due to perhaps differing terms on these (rates, restrictions, fees, etc) or are they all generally the same?

It's in a popular year-round tourist destination with a shortage of hotels and heavy restrictions on STRs. 

Laws here are being increasingly restrictive.

If you are comfortable with renting by the room, check the local municipality laws in the areas you are considering to make sure there are no restrictive laws about operating boarding houses.

On another note, you have some fairly restrictive laws regarding private lending, consumer protection (seller financing to an owner occupant) and loan servicing in CA state so make sure you are allowed to do this on your own and understand the licensure requirements to lend, broker loans, and service them as well.

@Aaron Laprade I like my area for this but you have to look at STR restrictions that a few of the towns are putting in place.

We wanted to start in Anaheim being so close to Disney and LA and Hollywood and all that but there's so many restrictions.

As for STRs definitely check the rules in your area cause MA has a lot of restrictions on days.

If the reason is particular to that lender, you can search for a lender that may not have the same restrictions.