They gambled, and lost.

Single family homes are exempt from rent control when privately owned.  

I’m about to tell you about a deal that could have easily fallen apart, but instead turned into a $200k profit after a lengthy eviction process. This one came from Massachusetts, a state where the eviction laws are no...

Keep in mind rent control is 1 thing, its a laws for existing tenants but some city's like Newark are so strict that you must get approval for what rent can be even after a tenant moves out and new ones move in. 

I predict that the substantial home price cost savings and greater control they enable the buyer to have will make them grow in popularity.

In CA currently only MF properties are rent controlled.

So sad to hear that all the time and money you or your clients invested and the trust you had for Delta Build were lost, in addition to the lost opportunity to otherwise make money.

I heard a story today of a condo owner whose entire complex was lost.

@Mark Forest the comments above that you’ve lost, or will lose, all or a significant portion of your investment may or may not be true.  

SFHs are largely exempt from many regulations such as rent control.