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I had this error and went through several iterations of what should work. It kept reporting a 500 error, not enough valid hosts. After several hours of frustration I did the unimaginable and rebooted. Sadly it worked.

After the system boots I am able to deploy a stack with a new network and the instance comes up without the 500 code. I would put this in the bug realm, but I don't know how to reproduce it now that I have rebooted and it works.

I was testing on an: All-In-One, RDO Mitaka installed via packstack, running on Centos 7.