STR in Unregulated Market? What would you do?

Question

Hey fam

I'm researching markets and was very intrigued by a nearby city. But a few variables that make me hesitate:a) it's an unincorporated area of the county,

b) there are no existing ordinances or policies about short term/vacation rentals.

c) nearby cities in the same county are relatively strict. (max # of days per year, only hosted STRs, permanent residence of the cities, etc)

d )County planning department said that it is not allowed on the phone. He also said it is not regulated, and they only respond to complaints. When I asked him if he could email me the policy that forbids STR's, he emailed me the following:
"According to an Assistant Planning Director, we do not have a policy or Ordinance regarding the short-term rental; therefore, it is not allowed in the incorporated country area"
Note - I think he means "un"incorporated county area.

My understanding was that if there are no current regulations - we're good to go. The risk might be that regulations could change in the future, but for the time being - set up your AirBNB away!Would you invest in a city like this?

Jonathan Avellaneda · Answer

What does long term rents look like? Does your value/equity position support selling if need be if they change the Airbnb regs?

in other words, ensure that you have multiple exit strategies that will work and you should be fine. I would also find out what is considered short term because you may be able to target mid term rentals and avoid all of that as well.