I even see this bureaucratic/zoning problem with restrictions on tiny homes, Airbnb, and other creative ways to use space.Good point about China and Singapore, I hope we can learn more from those countries in that regard.Best,Dave

Check the Ontario Act to be certain you do not have a similar regulation.Also check the act to see what are your restrictions on raising rent ... her we have the concept of a long term tenant (tenancy >5yrs) which places some additional restrictions on termination of lease and how rents can be raised.I doubt you can ask for a vacant park ... unless you were planning to redevelop the land ... even then, you may have to compensate tenants ... again, read the Ontario residential tenancies legislation.

There are Very many different local rules, regulations, restrictions, liens, strategies, etc. that come into play.  

Conventional loans tend to be the least restrictive. 

If you decide to sell it under a 1031 exchange then  you are not restricted to vacation rental type property.  

But I would wonder 1) whether your HOA has restrictions on that, too and 2) whether you have an existing mortgage or not.

If you purchase a property that has 5 units or more it no longer falls under the residential financing restrictions.

My cursory research for Atlanta Airbnb laws doesn't find anything restricting your right to rent out a second property. 

There are restrictions to doing it this way as the money has to stay within the IRA and can not benefit you in anyway (until you retire that is).Tagging @Dmitriy Fomichenko to help you out with this.

What you are describing as a "flaw" isn't a flaw...it's a restriction or limitation based on the market you are investing in.