RELATIONSHIP - With a private loan, you're able to establish and develop a relationship with the actual lender.

Institutional private lenders operate on a larger scale with more structure and formality, offering quick and flexible funding but within a regulated framework.

should regulations target the big institutional buyers? 

Not only do you risk Dodd-Frank attaching, but this could very easily be considered a consumer finance transaction (like a personal loan) - so TILA/RESPA/Reg Z as well as whatever state regulations will attach.

At minimum, I would try to establish rapport with one handyperson so you have someone on call for when things go wrong. 

Keep your budget in mind for quality improvements, check local regulations and manage pricing.

Lease should also state that the tenant be in compliant with HOA rules and be provided that document as well to have on hand of the HOA bylaws, rules and regulations, so that if they do have an HOA violation, they be charged that fee and correct the violation [when it's their fault].

Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.  

Hi @Mathew FullerFort Collins has historically been a challenging market for house hacking due to the stringent YOU+2 occupancy regulations.

If you’re serious about a STR you should start researching markets, understanding local regulations that may apply and then looking at properties and running the numbers.