Thanks Michael, great info that I can pass along (while disclosing that it is not tax or legal advice since I'm just a Realtor® ;)

First complaint I have about the system is there smoke and mirror gray and white disclaimers they almost contradict him selves not with the services alone more of the membership payment etc. 

Make sure the bedroom has legal egress in case of a fire, either a legal sized window to the outside or a door. 

You will have formation costs, earnest deposits, legal bills, due diligence costs, etc that will likely all come out of your pocket initially.  

Is there any legal way to invest in this concept without being accredited as an investor per SEC rules?

Consider legal and financial implications, such as a loan agreement and tax consequences.Respect their decision and explore other options if necessary.

This helps avoid our clients/real estate investors a lot of legal issues. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

@Joe Freehold due to legal issues, not aware of anyone offering this anymore.

Bottomline is that you are unlikely to "win" a suit against the city and even if you did, the legal costs would be very high.