What, if any, are the ramifications if the operators did no due diligence to make sure investors needed to be accredited? 

The operations will make or break you. 

Quote from @Nicole Heasley Beitenman: I'm coming up on my first year of operating an MTR.

Hey Dan, renting to a sober living operator can be a great idea.

Private equity firms seem to favor larger operations with scalable systems, while smaller mom-and-pop firms are often acquired by local players or regional operators looking to expand their footprint.If you’re looking for actionable intel, reaching out to brokers specializing in the sale of PM firms could provide useful leads.

Currently operating and cashflowing, listed for sale What made you interested in investing in this type of deal?

Q1: Great points, we'll need to have a detailed operating agreement that outlines an agreed approach to all potential outcomes.

If you take this housing away from these people where do you intend to have them live; in the streets, underneath freeway overpasses? 

I had one short term rental that was granted a permit earlier this year and I have been operating it for months now as an STR.

Many of our borrowers/clients have one LLC that owns the building and another than own the operating business.