Dodd-Frank lays out some very broad restrictions & requirements and then charges the states with figuring out how they interpret Dodd's requirements and how they will implement them. 

Thaaaaaat's a broad statement, I know for a fact that CS Bank in Columbus makes conventional loans to LLC's.  

I like this post because it gives a pretty good answer to a very broad question, "How do I get started in real estate?"

Have an agent set up MLS searches for you or do it on a site like realtor.com  Set up alerts for a broad price range and area and start looking at the new listings daily.  

Typically you'd want some form of broad coverage for the dwelling itself, as well as liability coverage.  

And by the time from the house being under initial contract all the way to finally selling the thing.... months of time and hassle, although costs should be accounted for its still allot of unnecessary risk and time spent with a house on your mind for not much reward. instead of using a 70% rule, do a detailed estimate on the big array of holding costs associated with inquiring and holding and selling a property, that will give you an idea of what would be reasonable for a cash buyer to need as motivation to pull the trigger.

and is the economy dependent upon just one sector or is it broad based?)

I am just providing broad stroke ideas to get their creative juices flowing.  

What the local economy based on, is it one industry or broad based? 

It's a broad subject and everyone has heard a horror story, especially in the wake of the recent 'great recession'.