Managing risk in this situation although nothing is 100% fool proof, is to have the seller sign acknowledgements as part of your best practices.

It's not foolproof but can help.

Can always call the town you want to buy in and see what they say.It’s not at all foolproof but you can also look on Airbnb and if there’s a lot of rentals there in the area you want, you (should) be ok to do it as well, just make sure there are no restrictions like needing to get a permit or something like that, the town can tell you this info.Either way if regulation is something you are worried about, maybe a Mid-term rental (30+) days is something to look into, these haven’t really faced any regulations yet as far as I’m aware.

It's not foolproof of course, but using local people referred to us by local investors helps reduce some of the risk for us.  

And while not foolproof, getting a recommendation from another investor is what we need.  

(even then it is extremely tricky without experience).So if I were you, get experience in your backyard (depending where yo ulive) and after you see first hand how wholesaling really works that the gurus didn't teach and show you, then devise systems to handle all the things no one taught you, and then fool-proof your systems, and slowly branch out.I am only now about to go nationwide (sorry America, but there will be a new boss in town) and I have been doing it for several years.This is not meant to scare you.

It's not 100% foolproof but an indicator of things to come.

It's not foolproof, but it does help in reducing these types of things. 

It may not be foolproof but it should help with getting to someone good a little sooner.  

So, sticking to one method is certainly no fool proof technique.