Seacoast NH, for example, has some great potential with short-term rental markets (Airbnb, VRBO), especially in towns like Portsmouth or Hampton, but the regulations can be a bit tricky.

I know life isn’t always fair, but these laws and regulations are outright oppressive to landlords.

Definitely follow the regulations in the area and if permissible I would offer to attempt to find an acceptable tenant and terminate their lease when that happens but in the meantime they will need to continue to pay.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

Are there any rules, laws, or regulations regarding this?

If the title company won't respond, contact whoever licenses/regulates them in your state.

Ensure that you check your state's regulations and requirements regarding security deposits.

There's a lot more compliance, regulations, and other protections that many brokers do not feel comfortable hiring just anyone. 

There is a lot more state regulations and lending laws change when 5 units or great.

This is a complicated situation with multiple layers to consider, so here’s my take based on your questions:If you’re looking to move assets from the partnership into individual LP (Limited Partner) names while avoiding capital gains, you’ll need a strategy that complies with tax regulations.