You're treading in RESPA-infested waters there and these are federal, not state regulations.Referral fees for ANY closing services on residential loans are strictly prohibited under RESPA regulations. 

Every county has different requirements, such as minimum square footage for rooms; maximum number of occupants, hallway sizes (If there will be residents in wheelchairs); and safety regulations which are usually different that owner-occupied homes (for example- Interior fire sprinkler systems).  2.

I would talk to a lender about the 3.5% FHA rules and regulations as far as the self-sufficency test goes. 

As best you can find out the regulations and if possible the sentiment of the community. 

We have everything you need to manage ready in a can: photography, advertising, application, leases, rules and regulations, smoke detector notices and all other forms you need and background check (we do this a lot).

I know they have regulations but it seems from the government website you can operate in commercial zones (C-2 C-3 C-4 C-5 UGCCC, IX, RF, RV, CX, SH).

You can also find a MTR consultant or someone who operates in the area to help you determine the rent rates, demand, and supply numbers in your market. 

Investing in property management and staying informed about local regulations are essential.Good luck!

I raise this because there’s no true regulations and it’s truly the Wild West of lending with tons of questionable participants. 

However, you'll want to check your local and state regulations just to be safe.