Its up to you the investor to realize this before you invest in these kind of vehicles. 

Active real estate investors who can't get comfortable not being in the driver's seat, people who just don't like real estate as an investment, those who can't get comfortable with the risks, those who just don't understand syndicate investments, those who have heard bad things about this type of investing from others, and people who have invested in syndicates and experienced bad results.

Guns done kill  people do.. well sub 2 does not kill sellers the people that do sub 2 with bad intent with not enough money etc etc they are the ones killing the sellers the sub 2 is just the vehicle that led to financial mortality for sellers in a sub 2 gone bad scenario.. and U cant have thousands of students who you know for certain have neither the capital or character to pull these off safely for the Seller..

Lease options are the vehicle of choice here, until I sort out how to get to the other side of the ceiling imposed by debt to income ratio.

We see it all the time with the conversations on what cars/vehicles folks drive :) here in BP there is a badge of honor to drive a 20 year old 250k mile car/truck :) Myself I saw my dad do some of this although he never got to the utra wealthy stage by a long shot but made good money in RE however it was not until he bought old style timeshare in Maui that he would finally take a vacation..

His dad doesn't own any vehicle.  

For those reasons I see it quite remote that any state could come up with legislation to stop a sub 2 transaction or automatically call it.. there is already a vehicle in place to call the loans.. its up to the holder of the note to enforce it if they wish..

Personal background: Married with no kids, 100% debt free, live a rather tame lifestyle and don't spend large amounts of money, two newer vehicles (2020 & 2024) so no vehicle purchases expected for the next 10 years. 

Slim that margin up and make a solid offer to the bank and use volume not margin as your driver.

What % of vehicles do you see that are the lowest cost option available for transport?