@Andreas Mueller Lets presume the 1% rule is valid.

For over 45 days I bickered back and fourth with this guy to get hard numbers backed by financial statements.

In fact I have even seen a police car drive around someone setting off illegal fireworks IN THE STREET on the Fourth of July!

But you could probably refi out into a conventional and I assume that would clear that rule. 

A few shifts: tighter rules around licenses, new limits in multifamily buildings, and stricter enforcement timelines.This doesn't hurt the ability to invest in STR's if you know that rules and what to do...

Of course, there are exceptions to the rule, but they are not easy to come by.

There has been discussion for sometime about rules and regulations and our best guess is that by next summer (or sooner) some type of rules will exist to operate a nightly vacation rental within city limits. 

@Samuel PetersThe 1% rule is just one piece of the puzzle.

I would advise against trying to skirt those types of rules. 

Those are two different sets of rules.