It prevents local municipalities from banning short-term rentals (as some currently do).  

But I'd also add that it wouldn't prevent me from going under contract.

So what all problems can prevent me from getting a mortgage on it?

You would think common sense would have prevented some of the crazy DIY remodels but then if that were the case HGTV would not be such a blockbuster network.The root problem will determine the best route to leveling the floors.

I have an excellent credit score, enough liquid cash to put 20% down on properties that I have been researching but the thought of failing at my first RE investment opportunity has prevented me from taking actions.

The very act of getting a property under contract is preventing other buyers from buying the property.

However, if the seller is right there in front of you, there's nothing to prevent you from making an offer on the spot.  

Charlie McVan - if the properties are on one lot and you're not planning to separate them into two deeds (which may result in higher total property taxes), then if you move both properties (by transferring one lot) into an LLC you will likely prevent yourself from getting the free owner occupied $250-500k capital gains tax waiver after living in the one house for two years.I deduct my rental repairs on my schedule e against my rental income.

@Neal Collins Account ClosedThis is exactly what I was trying to prevent for Chrishttps://www.biggerpockets.com/forums/52/topics/438...         

It also forces a 90% pay out of the dividend, which prevents sly companies from refusing to pay out the dividend.