Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement. 

@Don Konipol we solved it by learning from the Intentional Living Community (the OG's of independent adults living together). 

@Kelly SennholzYeah, it seems like Denver's intent at the outset was to address affordable housing.

I question if their intent is to pander to constituents to get votes rather than make decisions in their constituents best interests.Here is some predictions: 1) rent for existing tenants will go up max allowed increase 2) rents for turned over units will go up far higher than the historical average.  

The flip side is that I would not be paying that much in fees, because my intention is to flip the property and since I am not planning to build, I won’t have to deal with that many of the HOS’s rules.

In addition your tenant can cause you headaches by doing intentional damage and reporting you to section 8 office.

Ironically, I think the DOJ nonsense is backfiring on their intentions. 

The intent is the sponsor needs to know enough about investor to feel comfortable the investor has the financial knowledge and acumen to properly evaluate the potential risks and benefits of any investment and the financial stability to invest capital for a 5 to 7 year period.Topics of discussion with sponsor would be:Income, credit, job stability, prior investment experience either with real estate or other asset types, education level, occupation and profession, amount of savings or funds in retirement accounts.Hope this helps.

Well my property is empty but someone reached out to me to lease with that intent 

The online valutation isn't done by any malicous intent.