Unlike North America and Europe where short-term rentals are increasingly regulated and downright banned in the most attractive locations, there are hardly any regulations in Latin America and it's unlikely that'll change anytime soon.

Does this mean they ignore the regulation and take their chances?

Local regulations may restrict this so if you decide to go that route be sure to do your research.

If you don’t really know the market, surround yourself with people that do and start learning about cap rates in that market, vacancy rates, rental growth rates, unemployment rates, employers (job generators), governmental policies and regulations, and so on.

Due to state regulations, the ridiculous cost to evict, and the ridiculous timeline to get tenants out, those investors are people that have had low risk investments or great management on high risk portfolios.  

I like the idea of unincorporated areas and did so with my first STR, but county wide regulations can wipe that strategy right off the board. 

We are aware that Blowing Rock, Boone and Banner Elk have regulations so we are hoping to find a lot that is outside of their regulations but close enough to allow STR's. 

At that time there were essentially no rules in many of the smaller town and cities, many of which have since implemented strict or limited permit application and approval processes. 

Regardless of who you are buying from, it is important to always follow strict due diligence practices to ensure information is accurate. 

But San Diego is now regulating STR's and trying to force only 1 unit per owner (or 2 per married couple), if you're lucky enough to get a license at all.