It also precludes you from some of the advantageous loan terms for owner occupants if you decide to house hack.

It would be very difficult to advise you without specific demographic details, lease rates, Rates, occupancy‘s etc. these are the things you want to take a look at and you want to go where the demand is.

This is EXACTLY the times we were warning against...Another time is coming, perhaps 2 or 5 or more years, when this 5%+ quarterly (at least in my town) growth of new Airbnb properties leads to an implosion of occupancy and/or rent in the STR space.

It's not that the property has low occupancy which is one of a few different reasons a bank may not issue a loan for the property?

However:We are noticing the market is getting saturated with vacation rentalsWe have had to lower our rates to keep high occupancy especially in slow seasons like summerWe added a hot tub to one of our properties to see if it would help bookings - it has but it was a big expenseVacation rentals have had negative effects on communities like Sedona by driving up housing costs and making it more difficult to find housing since most people want to turn their properties in vacation rentalsWe are pretty concerned that the law that originally inspired us to do this is going to get repealed or modified (SB 1350)If I were buying a property now in AZ I would be more careful about pulling the trigger.  

Clearly its not a year around market, but even with 6-8 month occupancy numbers should be decent.

What's your occupancy rate?"

The buyer was a owner occupant who planned to live in one unit while renting out the other.   

What big john said. igms works great for me I don't see how it would be possible to do any less work on my 5 soon to be 6 extremely high occupancy properties. 

I would look only one month ahead for to assess for occupancy.