He’s also talked about the need to tackle the housing problem through regulatory reform and carrot-and-stick incentives for neighborhoods to produce more housing.John Cox stance:We need to get rid of burdensome regulations on home builders, Cox says.

@Christopher GriffinLook at the regulatory climate and taxes as well.

And I see that most of the regulatory information deals with safety during renovations. 

I give advise based on my experiences along that spectrum, I try to take in the norm of thinking nationally, based on reviewing matters by attorneys in other states, federal regulatory views, HUD, the NAR and ALTA along with other national associations.

What about the State Real Estate regulatory body?

This should significantly decrease the chances of encountering regulatory hurdles.

Zoning is more specific and regulatory, dictating exactly what can be built "today" on a property.

Then it sounds like a regulatory nightmare and constant money pit.The money would have to be really high on these things versus alternative asset investments to place your capital unless it was just a labor of love.

While it's still early, the performance of the vacation rental has far surpassed my expectations and blows away the returns I'm getting on my long term portfolio.I'd like to add more vacation properties soon, but am reluctant to do it in Vegas because the regulatory environment is not friendly for vacation rentals.Any suggestions for where to look? 

This structure isn't a scam perpetrated by the sponsors--it's just how they have to operate to comply with the regulatory framework.