This is highly regulated.

Saturation/competition and regulation being the 2 biggest challenges.

A great property manager ensures compliance with all relevant regulations, which helps to mitigate risk for the property owner.5.

Mitigation Strategy: Implement value-add strategies like property upgrades, which can allow for certain rent increases within rent control regulations.

Properties in areas undergoing revitalization are especially attractive for investors looking to buy low and achieve high nightly rates.Regulation-Friendly Market: Compared to many other large metros, Indianapolis has relatively relaxed short-term rental regulations, making it easier for property owners to get into the market without facing excessive restrictions or permitting hurdles.

Local Regulations & Market Conditions:In areas where vacation rentals are regulated or oversaturated, factors like legal compliance and market competition can have a bigger impact than ratings.

Consider zoning regulations, nearby development projects, and market trends to gauge its potential for value appreciation or rental income.

Each of these markets has its pros and cons, from rising property values to varying regulations on short-term rentals.As for financing, beyond traditional mortgages, you could explore DSCR loans (especially useful for rental properties), private lending, and even seller financing.

However, they told me that I have to rezone my property as commercial and that I have to comply with a bunch of different regulations like updated landscaping, parking, etc.

It is precisely because of mentoring programs that teach strategies and techniques to people who do not have any grasp of the three afore mentioned fundamentals that we have such a mess with “wholesaling” and “subject to” that governmental authorities are figuring ways to heavily regulate or outright ban these activities in the residential real estate field.