The loan may have been structured that way to comply with legislation and be safe.

Upfront payments is usually the MO of drug dealers and those who don't want to comply with the other rules of your lease.The hardest evictions are for items not related to rent payment, ask any eviction attorney.

(Use a servicer for complying with Dodd Frank).After you have it performing for 90 days then think of selling it.As has been pointed out you do not want to get into pooling of funds as that is a whole different animal.You have to do several yourself so you have experience and a track record.Due diligence is very important in this business.

But I would guess that the seller hasn't fully complied with the law either.

(Letters of Administration in some states).With a sale of one to four units of owner-occupied property located in California where a loan secured by the property is in default, the sale agreement must comply with California’s relatively intricate pre-foreclosure sale statutes.

If they cannot refinance on a moment's notice, they may lose the house even though they have complied with everything they agreed to. 

Find out the lead paint regulations in your area to see how it complies. 

You will have to comply with the rules of the jurisdictions of both your fund and your investors, so you can't avoid unfavorable rules by setting up outside of the US if that's where your investors are.  

It's not that they allow the signs over the weekend.It is that the enforcement people don't work on the weekend.When you see that advice, it is not advice on how to comply with the law, it is advice on how to get away with breaking the law.

If the dog is a huge risk to the home and you don't want to consider any alternatives, it is time to make them comply or find a new place to live.