Has this flipper created a fund that is compliant with SEC regulation and is legally allowed to pool investments from multiple investors?

For a compliant filing and maximization of your tax position, connect with a real estate CPA as Will mentioned.

This will ensure you're legally compliant regarding contracting and RE law.

I explained to the agent the tenant is being compliant, allowing showings, didn't even require 24 hours notice.

This might be a little long winded, but here's what's going on and what you need to watch for to stay compliant and legal.Please don't misunderstand what I'm saying below.

I currently have the application from the book on managing rental properties but I'm not sure if that is California compliant.

If you're in the resi space you're gonna want the loans that are Fannie & Freddie compliant so all the terms will be more or less the same.

We now have a complete fire sprinkler system installed, all units have 2 stair exits down & all units now have adequate egress windows installed.Took me about 18 months to complete it to code & had to get it signed off as compliant by our commercial architect, the bldg insp & the fire chief. 

My advice is to use your 10 Fannie & Freddie compliant mortgages to buy 1 personal residence and 9 rentals consisting of 1-4 units.

You'll need to make sure you stay compliant with the law while not incurring too many legal costs.