I do know banks can look for what can be expected as rent, but that usually applies for established investors with track record.Thank you

What are there rules outlining the occupancy regulations for the VA loan?

Values will be dropping soon due to the fact that these types of properties, (including certain types of retail and office) will have to be "repriced" according to the new occupancy regulations.

Like most other practices, this will lead to more regulations to weed out "bad apples". 

If you are seeking to change the behavior of an RV park from transient to permanent, consider installing "Park Model RVs" which if you are not familiar with, are smaller versions of a mobile home that comply with the zoning regulations for RV parks. 

if the loan is less than 100k, it gets difficult to refinance due to state regulations, even when there is substantial equity.

If your place is in Hawaii, might want to check out the short-term rental regulations.

Its unfortunate but I rather be in line with city regulations.

Please note that there are specific rules and regulations that can be different depending on what city/county your property is located in.I would suggest that you look up joining either RHAWA or WLA. 

Psychologically, it feels better to a lot of people to pay off debt and establish a clean slate before putting money towards an asset.