She must also check with her mortgage lender and insurance provider to ensure no restrictions and update her insurance to cover the risks of short-term rentals.

HOAs can limit your ability to rent the unit too so you'd need to scrutinize the HOA bylaws to see if rentals are allowed or if there are any restrictions on rentals such as owners can only lease their unit for a max of 1 year etc..

You may need more than one as some lenders may have restrictions on where they lend2.

Then get with your tax Person to find out what the cost of this type of setup will be, and also talk to your lender to see if this is going to put any restrictions on your borrowing.Good Luck! 

It’s like you used your money to cash out loan first (so no restriction). 

Investors connected and contacted me from BP the third week of May, frustrated with their STR search due to licensing restrictions, but committed to finding a coastal second home eligible for vacation rental usages before the end of summer. 

Quote from @Jeremy Greenamyre: If the goal is to incentivize housing construction, the federal, state, and local governments could also address the disincentives - environmental restrictions, "green" requirements, restrictive zoning, studies, etc.

And Worcester needs housing and leaders look kindly on seniors and any deed restricted housing. 

Many lenders hare restrictions or guide lines on how long you have to keep the house in order to flip the house, while others have guidelines on how small a mortgage they will consider.

Although HELOC'S are available on 2-4 unit investment property homes, reduced Max LTV's, rates and amortizations can make $250k+ equity lines even more restrictive.