If this is a deal breaker then you will likely lose your deposit.As long as the neighboring house and structures complies with city ordinances and HOA rules/regulations, I don't believe there is anything you can do about it.  

When the motivated seller is asking too much I negotiate the price down to a fair price and everyone's happy.Find yourself a great investor/agent or investor-friendly agent with negotiation skills.Plus, you have more protection as a buyer when you buy from the heavily regulated Multiple Listing Service than you do from the "wild wild west" of wholesaling!!

@Matt SkogIn today's note environment, it is challenging to find notes in general.

So, even a 5% cap building can produce a 8% or 10% CCR assuming of course the debt's interest rate is lower than 5%.Cap rate is the CCR if one pays if one uses all cash - no debt.Internal rate of return factors in not just the cashflow from a building but also the capital gains and loan paydown one gets from the investment.The IRR on a 5% cap can be a 12-15% or even 20%/yr specially after the sale or property disposition.So, you can make a good return (double digit IRR) on your money even for a low cap building.But to answer your question more fully, in general, it's hard to get double digit CCR on an investment without ACTIVE INVESTING specially in the low interest environment we have now.

An important fact, that many don't know, is that being a 1031 exchange intermediary is not a regulated business.

Pros:1 Strong cash flow as is and rent premiums make it that much more attractive. 2 My end goal would be to resale the individual units to cash out. 3 Even if the environment for resale changes, there's still upside from rental income to hold on to the asset.

What I have read thus far is that these servicers “keep you in compliance with federal regulations” and it’s obvious they provide a value for investors wanting to scale, because I don't see how one could be involved with dozens or hundreds of notes and stay on top of it all.

A person has to deal with government officials, contractors, suppliers, inspectors, insurance companies, regulators, health departments, social services, police, and sometimes even military. 

The problem in Key West is not only the property prices, astronomical insurance, and potential disasters (I lost my home in Hurricane Irma), but there are extremely strict city regulations and laws in place for STR’s.  

My guess is that new regulations will pass in the future and put a stop to the huge tax hike but not sure how soon that will be.https://fox2now.com/2019/05/14/st-louis-airbnb-hosts-to-pay-increased-taxes-after-city-reclassifies-residential-properties-to-commercial/