Maybe I'm late to the game, but I wanted to throw this out there in case it helps someone else.

I recently had to back out of a deal after doing some deeper due diligence on the local Airbnb regulations in Old Brooklyn. Cleveland's new short-term rental ordinance goes into effect November 1. 

After speaking to my management company it seems that the city will require all STR landlords to apply for a permit (even current airbnb investors). The biggest change is the new 10% density cap, meaning short-term rentals are limited to no more than 10% of the residential units on a block (or within a multi-unit building), with at least one STR permitted per block/building. After speaking to city officials it seems that the permitting process will be a first come first serve program so there is no way to guarantee that any investor will receive one or determine how many STR's surround their property's block ahead of time.

I wasn't comfortable performing on the contract knowing approval would be a gamble. 

Hopefully this is helpful so you don't waste your own time or a seller's time when it comes to STR investing in Cleveland.