I am a little surprised that this topic isn't discussed regularly, because in the current interest environment the rates for investment property financing are surprisingly high.

As many major metropolitan areas continue to impose anti-short term rental regulations, property values in profitable true vacation rental markets will continue to rise, as it would be detrimental to the economies in those areas to impose any anti-STR regulations, so STR investors can safely move their investment dollars there.With that being said, it’s wisest to bet on cash-flow, and just look at appreciation as a bonus.

I dont see how anyone can dispute that investors will look also but it means a competitive sales environment which is good for seller. 

That was in 2009 and it took me about six months (as time allowed) to develop and $900 for my attorney to review (about ten documents).In a bigger, heavily regulated market like yours, there are probably resources available from the state, local investor groups, or attorneys that work regularly with investors.

Agree with @Russell Brazil, in my area there's rooming house regulations.

Hi Alison, a lot of variables; LOCATION, potential economic vacancy, deferred maintenance for both homes and park, who will operate the day to day, municipal utilities or private, zoning regulations, etc?

If you have a loan on your rental property it’s most likely with a federally regulated bank that must follow federal laws.

Keep in mind that we're usually regulated on percentages on what we can charge. 1% of $75K is quite a bit less than 1% of $300K, but our fixed costs remain constant.

yea, the SF startup environment is very different than startup environment in south bay. 

:D I admit that I know very little about developing, but I certainly can agree with your beliefs about the internet as well as the current economic environment.