Common sense and logic would dictate that there is some bit of illegality involved with the tactic and that should be apparent if you are a day 1 newbie or a 15 yr veteran but just how wrong could it be?

People will always want more space if their budget dictates.

This is an area where the appraiser and lender get to dictate which method is best for the situation.

A short term rental property that is rented 255 days a year, or 36 weeks, which is the 70% dictated in the last line of that proposed bill will likely still bring you a nice profit and is actually pretty reasonable (few come up for six weeks in April to may and from the end of foliage through the first snow.

All of these dynamics are dictated by the marketplace.On the other hand, there are also some general guidelines.

As some have alluded to, local and state laws may dictate what you can charge. 

It also seems as a negotiating tactic that is becoming far more popular.My other assumption is that OpenDoor's margins will likely only decrease as time goes forward if the market dictates the need is there. 

Good third layer would be LLC structure, but your lending may dictate otherwise - talk with your lender.

In Maryland the law actually dictates how this happens. 1/3 due at contract signing. 1/3 due to start work. 1/3 due at completion.

How you personally organize your information may also dictate which properties you put into which LLC's.