Sorry, but it would take one to get folks on the right track.I guess people have no idea of how much input goes into forming regulatory law from the industry, regulators, and even public comment before the politicians simply bless what has been formulated and proposed, all the politicians do is ask questions, gather support and vote, their staff only concludes the administrative side.

I intend to invest in small multi-family properties (2-4 units), but will add a layer of "regulatory armor" around any local investments based on what applies now and what the tea leaves tell me will apply in the future.  

If not, then you need to decide whether you will contravene the zoning bylaw or allocate the space to a different purpose.After the regulatory question in satisfied, what you do with the basement space becomes a math question ... what will yield the highest return to your business ... do you split the basement and apportion it amongst the existing ground floor units?  

The other is that the lender is not on the hook for more than the remaining loan balance, but the entire net worth of the owner / ownership entity could be lost due to a lawsuit or regulatory enforcement action. 

No longer are small timers “overlooked” by regulatory authorities.

It all sounds so easy until you start looking at the regulatory environment you are wanting to be a part of as a fund, to save the pittance of money you think you will save (by not using lenders that have been in this business for decades.)  

This is completely allowed as long as you disclose it to both companies and your regulatory bodies.

You can always contact the state's real estate appraiser regulatory agency to find out more about an appraiser (or to report suspected fraud).

That being said, the regulatory and expense burden of selling a house makes the area unattractive to many. 

I think you may find that in high regulatory markets it can take a lot longer than 6 to 7 months to get to exit.