Fannie Mae loves there is this opportunity for the borrower to supplement their ability to repay the mortgage.In the case of the latter why all the red tape about it not being in your home market, not having multiple of these loans in the same market, having to skirt the line of what kind of homeowner's insurance you can bring to closing (IE not landlord insurance you'd want on an STR), etc?

Try contacting your local planning and zoning board and ask them..  

The important things to consider are finding a single family on a multifamily zoned lot, number of parking spaces, number unrelated parties allowed in that city/county, and overall lot size (for future development).  

@Sher J.Outside of flood zone.

Ive done some flips before in the past and after currently going through a not so good transaction with a local wholesaler on a purchase, I figured wholesaling would be a great way to invest with less risk, as well as keep some properties for myself if they turn out to be great deals.I subscribed myself to Propstream, defined my strike zone and have mailed approximately 600 postcards so far.

If no red-flags, offer the application and spell out your exact screening criteria.

A good strategy would be to find a property that is zoned R-2 and over 500 feet away from another STR.

I’ve looked into Branson MS and it looks like the STR market should be great, but due to zoning restrictions and a lack of bookings for cabins under 4 bedrooms, I’m passing on this market.

Thanks, that is kind of how I was looking at it too. i also have to find out all the zoning and permit cost.

@Rolanda O'Bannon Your market may not be zoned for multi family housing.