In my experience, Sophisticated investors are often smart, hungry and eager to learn.. but also come with some inherent risks to the deal:* drop-out of deal at a higher rate, for a variety of reasons* expect more hands-on support (phone, text, email)* are investing a larger % of their total net worth, so are typically more nervous about deploying the capitalDisclaimer: I am not an attorney, and strongly recommend you connect with a qualified SEC attorney for advisory on this topic, and certainly for creating/structuring a 506(b) offering.To the point that @Tj Hines made above, it's worth noting that up-and-coming operators will allow for Sophisticated investors, out of necessity, since they are still building their network (e.g. mentees in coaching programs, who are syndicating "student deals" with the co-sponsorship of an established operator).

The ONLY money available is for supporting these specific resources plus food so basic necessities are taken care of.Even though, there are no guarantees, what would you do to close on a property within 45 days in this new location with only these resources available to you?

Have been told a license is not a necessity for success by many but I am unsure on how true that is.

Bought a new house in 2012 and started renting more out of necessity than desire. 

Everyone is different, but I view debt as a tool, sometimes a necessity, but I never let it get ahead of me.Forrest Faulconer

I absolutely agree with this, I believe that a home office space is becoming a necessity as people are looking for places to buy or rent.

Are the renovations a habitability necessity or a "nice to have"?

This is called an "easement by necessity."

Any fees the lender may have you pay (such as a doc prep fee to cover the attorney costs of generating the documents) or origination points should be on the HUD-1.That's the very basic necessities I have in place as a private lender using her own capital. 

The kitchen is not totally a necessity if there is not enough room but rents will be a lot lower.