I am thinking I can just not have the equity backed by an official note (the people who would be investing with me are a close friend and my family so they trust me) and that would be okay, but I am not sure how un-documenting this large sum of cash would mess with FINRA’s regulations...

When it's on wheels, it's regulated by the DMV, but when it's on a foundation, it's regulated by the city zoning laws, which often don't take kindly to the Tiny House.

@Tim Kanak The margins are better however it's also much more work from a management perspective due to the high turnover plus the potential of rental restrictions and regulations for vacation rentals and STR's.

Does anyone know the rules/regulations or where to look for starting an Air BB in Wheat Ridge CO/Jefferson County.

Crooks are always drawn to that moment where big money discovers something revolutionary that nobody yet knows how to regulate.

By educating yourself, you can become "sophisticated" enough to invest in syndicates that allow unaccredited investors under Regulation D, Rule 506(b) and by attending these events, you will likely meet other syndicators whose deals you can later participate in, perhaps as a member of the management team or as a passive investor (or both). 

@Marysue Connelly, The 1031 specialist you spoke to may have not had the entire picture.The regulations of 1031 require that the tax payer for the old property be the same as the tax payer for the new property. 

Sorry to be late to this post but if you are seeking section 8 tenants make sure to comply with section 8 regulations when doing your screening and when drafting your lease.The same is largely true for Veterans Affairs Supportive Housing (VASH or HUD-VASH).

If the work is done after the tenants are placed, it is already in service so you would begin depreciating it immediately.Without looking at the the costs of replacing the siding with vinyl (and other costs relating to the property), I am going to make the assumption that the work does not qualify for any of the safe harbors under the repair regulations and thus would have to be capitalized. 

Everything is regulated through deed restrictions.