@Chris Volgenau I'm pretty positive Cape Canaveral has had their restrictions in place for quite some time.

. • Assessment and collection of costs for this program from the leased units by the authority of the Community Covenants, Conditions, and Restrictions (CCRs), $150/year.

And all the while operating under tighter and tighter governmental restrictions and scrutiny.  

If capital is a major restriction, the FHA loan remains an option.Good luck!

However, more importantly is that in certain areas they have restrictions and you have to get what is called a vacant building inspection report before you sell the property which is essentially a laundry list of stuff you have to do before you sell the property (or you can have the new buyer agree to fix those things by signing a document).

Some contracts will restrict the liability to just the guarantor's share or another amount (say 120% of the guarantor's share), but this is less common.

Despite end user/consumer having restricted fund's/affordability.

@Heather FultzCondos can have the advantage of the maintenance of the outside taken care of but can run into issues with HOA and restrictions on STRs that you can't control. 

Once the 1031 exchange is completed (again assuming 1031 compliance), I am free to leverage the property in any way, without any 1031 restrictions.

These cities can easily have more restrictive landlord policies than a red area in a blue state (like Colorado Springs for example, probably less restrictive than any of these cities).