@Adam Craig every city is different and they all have their own ordinance rules and regulations.

That being said, FHA has greater regulations and guidelines that the property must meet for it to close.

In other words utilizing the general exemption for private placements costs about $8 - 12K less than using a Regulation D 504 b or c exemption from registration for private placements, but almost no attorney will take a case to sue when the Reg D is properly used, while the general exemption is a magnet for lawsuits.Just for clarification, here’s how it almost always goes.  

Choosing markets that have tight regulations on short-term rentals would mean that there is a higher demand for them.

. - It's big enough to have plenty of traffic but not so big that the competition is really fierce (yet)- Arizonas laws prohibit cities regulating STR (for now)- Property/rent costs are low enough even in popular str areas (near the University and downtown)But I imagine there are similar areas around the country (I know Tulsa is a VERY similar market to Tucson for example.

If the house is on city water, it's possible the water pressure regulator is defective or misadjusted.

I would imagine the details would be available in the language of the individual state regulation.

Our STR in the few months after the City Council passed the STR regulations lost over 10% of its ZEstimate value.So for any intended purchase make sure that the RE also meets your investment criteria as a LTR and realize that if the STRs are basically banned it will result in a loss of value. 

Meaning you buy for $100k and assign $70k to the building, $30k to the land, you must improve the building by $70k. (2) You must comply with the OZ Fund regulation which typically requires assistant from a securities attorney and CPA with strong knowledge of OZ's.(3) If you're recruiting capital to come into your deals, it can be difficult getting someone to invest for a ten year hold. 

Laws and regulations tend to be better here than most markets.