The question was, has anyone noticed that Zillow is restricting "owner financing" in the listing?

Is there restriction on STR around Pinecrest lake?

So, I would be very conservative (for your standpoint) on the researched estimate.I would do what I suggested above, then if the tenant takes you to small claims court you explain to the judge the legislative time restrictions you were under in order to come up with an accurate repair expense.This is yet another example of how "tenant protection" laws, in practice, end up hurting the tenant in the end.

Additionally, any existing restrictions at the town level (there are MANY) will be abolished, unless deemed "reasonable" by the state.

There are restrictions and unhosted seem to be illegal - https://www.longbeach.gov/globalassets/lbcd/media-library/do...They say that it isn't specifically prohibited but it is banned by the omission.

There are a lot of restrictions.

Check the Association & Rental Restrictions•If the property is in a condo association, verify whether there are rental restrictions (e.g., one-year ownership before renting, minimum lease terms, or rental caps in the community).

Your plan sounds feasible, but there are a few things to keep in mind:DSCR Loan Flexibility – DSCR (Debt Service Coverage Ratio) loans are designed for investors, meaning there typically aren’t occupancy restrictions like conventional loans have.

Especially since Covid, there are more restrictions on look-back periods for evictions etc (in some jurisdictions). 

I know Newsom / State Gov were talking in the immediate aftermath about pressuring the Costal Commission to waive many restrictions to expedite rebuilding.