I was told that it is most likely happening for several reasons (not worth getting into the details) revolving around the over site of the Association of Appraiser Regulatory Officials (AARO).

I don't know if that is a result of regulatory changes (and they were forced to get more real with their numbers and show more realistic rates of return) or environment changes (and more and more borrowers are defaulting on their loans lately). 

You will hear from most people on BP (who are not doing it) that it cannot be done - landlords won't let you. regulatory environment too difficult. guests will light your house on fire. etc. etc. etc.

The owner could then continue to rent the property, sell it, or enter into another lease and option scenario (though this time hopefully better educated and on-side from a regulatory perspective).As the college student, I would suggest the landlord either a) return my instalments and we part ways or b) you jointly sell the property and settle the proceeds in accordance with the present ownership ratio of the property (i.e. if the college student has paid 20% of the agreed purchase price, s/he gets 20% of the proceeds).  

This is why we deal differently in RE than we would selling a car, there are regulatory aspects that are design to safeguard the public and support civic needs of a community. 

Its attractive tax structure, a legislative and regulatory climate conducive to economic activity, incentives, finance and business assistance programs, low occupancy and construction costs and adequate space in which to expand are all fueling the accelerated growth.

Further, the compliance with Reg D will shortcut any attempt by attorneys for disgruntled investors claiming that their client purchased unregistered or illegally issued securities.  10 years ago the state of Texas, as well as many other state regulatory agencies, did not consider the sale of fractionalized interests in mortgage loans to be a sale of securities.  

It is someone the investor would meet in person and pass all of the regulatory checks that an RMLO would do.

Depending on how extensive of a rehab, it can be largely dependent on the regulatory environment (permits/inspections) and the level of competition and availability of contractors.Average DOM, once market ready, is a critical number that you can easily get from your comps.

Most SoCal zoning and regulatory agencies won't allow an RV to be used as an ADU so that stops a lot of folks dead in their tracks.