Have you thought about pending regulations in those areas? 

In most municipalities approvals have a few year shelf life and in the event new regulations or new zoning bills are passed you could lose the benefit of the in place zoning/development procedures.

Very few lenders do well in the space due to the risks involved (novelty, rules/regulations, etc...). 

Here are the 7 material participation tests as outlined in the IRS regulations:1. 500-Hour Test: The individual participates in the activity for more than 500 hours during the tax year.2.

In my case I operate using a Regulation D 506c and 506b, and operate a personally guaranteed debt fund. 

When I'm practicing underwriting, I'm finding a property that looks interesting, trying to find out median rates in the area and do some math to get to the NOI then divide by 6% and come up with some sort of value.

I am agnostic on geography other than looking to stay East of the Mississippi and out high tax/high regulation states. 

In practicality, your lease is saying that you have the legal right to charge the rent up until you find a new tenant because you have a legal obligation to mitigate your losses.

In general you should start looking for a single family house that has zoning regulations that allows to ADU (Accessory Dwelling Unit) or can be setup to house hack. 

I'm looking for any / all advice for best practices around how and when to inform tenants about the rental increase/request to vacate.