My observations:- Limited available land in desirable areas- High cost of construction for any type of structure- Developers are only making money on rehabs and luxury units, so are ignoring starter homes- Many people do not want small/starter homes- Very restrictive zoning in many communitiesSome communities (San Fran, Seattle, etc) have a crisis, and they won't solve the crisis until they ease up on zoning and also work on public transportation in a meaningful way. 

If I can find the code restrictions again I'll post the link.

Are the setbacks restrictive? 

Because I love dogs I did allow a dog, but I did enforce a breed and weight restriction. 

You can also add more value to the place to increase value over time (without restrictions).

I don’t think there are any other kind of restrictions as k to who can live where.

If you're going to put yourself in between a Mailchimp / Wheelhouse in order to market email campaigns or real time pricing with AirBnb / VRBO, then make sure that you stay out of the way of their code.

I really don't understand why cities are restricting this business model, it's so unfair!

There are a lot of jurisdictions with NIMBY zoning restrictions that severely limit housing density.Another option to look at is converting a SFH into a duplex.  

I think you’re better off putting that $800-$1000 to a website and a fully funded Facebook/Instagram campaign.