It's all about where regulations hit, and in MN that's at city and county levels. 

The requirements describe match those in the zoning regulations. 

Additionally, successful investors typically build a solid network and due diligence practices to minimize potential losses.Reinvestment: Using financing means you can reinvest the profits from one project into multiple new ones, potentially accelerating your growth.

Any tips, experiences, or best practices you can share would be greatly appreciated!

So in practice, it might not mean a lot. 

As you get further away from standard real estate practice, the risk is increased by a “legal” risk that your protection may be interpreted quite differently than you expect by a court and that the subtleties of the protection a mortgage or trust deed document provide with established law and court decisions handed down for (in the U.S.) 250+ years is not existent. 

Ensure all your screening practices comply with Fair Housing Laws and other legal guidelines to avoid potential legal issues.Improving your tenant verification process can help you find more reliable tenants and protect your investment.

My take is that predatory practices and threats must be controlled, and housing quality must be enforced.

Forced equity and cash flow vary quite a bit by the deal, but Idaho is the most landlord friendly state in the country- the state actually just passed a law making it illegal for cities to regulate rent rates or fees in any way. 

Are you working for a firm in southern California or do you have your own practice?