Every county has different requirements, such as minimum square footage for rooms; maximum number of occupants, hallway sizes (If there will be residents in wheelchairs); and safety regulations which are usually different that owner-occupied homes (for example- Interior fire sprinkler systems).  2.

We now hold it as a rental property that cashflows well with a 2.75% interest rate (got lucky with the rate environment at the time of purchase!)

I would talk to a lender about the 3.5% FHA rules and regulations as far as the self-sufficency test goes. 

I raise this because there’s no true regulations and it’s truly the Wild West of lending with tons of questionable participants. 

Some great resources would be here on BP, passive pockets, SEC edgar site (for example you can review Regulation A fund offerings as well as their financial statements to understand how to read audited financials).

Personally, I think most agents fail because they lack an environment to work within that actually wants them to be successful (no where to go and actually work if they want to work or learn the business).

Investing in property management and staying informed about local regulations are essential.Good luck!

A strong foundation for a future in real estate investing is built upon considering all avenues and points of view.Take the person who wants to invest in STR now and doesn't listen to others' advice on checking the local regulations and heat of the topic in the locale.

Additionally, how do you think the changes in density regulations will affect housing availability and affordability in both cities?

This lending environment is local so just ignore people from 1500 miles away when they tell you what a local lender will do.