It placed far more strain on the small and community banks than it did on the mega banks, which could spread the regulatory compliance costs over a lot more customers.With the ultimate repeal of Dodd-Frank, we should see banks finally start lending again, which certainly helps real estate investors.

There are other companies in the STR business who have already sued cities for STR regulation on grounds of violating the constitution and failed.As a landlord though, there is always regulatory risk with STRs.

Iowa's larger cities also in general seem to think adding financial and regulatory burdens on landlords is one of the solutions to crime, drugs, unemployment, poverty - "nuisance properties" as they call them here.

You are correct that there are many private placements, MF and otherwise, that are not as closely monitored by the SEC and other regulatory entities, but are still perfectly legal to invest in so long as you are an "accredited investor".

They may still be a need for auxiliary heat (electric baseboards) in bedrooms - or all areas - either from a regulatory or practical position.Another thing to consider are improvements to the building envelope - air sealing, insulation, windows, doors, etc - will have a bigger impact on building performance than changing out the type of HVAC.We have removed a central HVAC in two smaller buildings (4 & 6 units) and replaced it with ductless split and auxiliary electric baseboard and are pleased with the results.  

It's not rocket science and you probably have gained much of the knowledge already, the road block is regulatory issues.Look into getting a license, I believe it's much like that for a real estate agent, you'll likely need insurance and a bond.

Fear of a regulatory agency probably kills more deals and business relationships than lawyers and RE agents do.David J Dachtera"Success is not a destination.

(There are others as well, such as regulatory, monetary, via collusion, etc.)

Is there any legal, regulatory or compliance red tape that needs to be addressed? 

Real estate brokers typically don't obtain a purchase contract or option in their name, and sell the contract or option.This is not to say that doing the above as a business model does not require a real estate license (state requirements, laws and interpretations vary), bu,t that if you don't appear to be doing what real estate broker's do you are much less likely to be sued, accused, or catch the eye of the regulatory authorities.