Trying to educate myself on all the rules that I need to follow from regulatory perspective before the property is rented.  

I'd add index funds, reits, equity markets have benefit (and overhead) of greater regulatory oversight/compliance providing some protection/assurance for shareholders.

Legal and Regulatory Steps:Establish an Association: You'll need to create a condominium association and draft the necessary declaration and bylaws (condo docs).City Approval: Obtain the necessary approvals from the local government or zoning board.

I let a setback sideline my real estate investing for close to 24 years.

I've always thought that the annual Fair Housing training we always had to take in banks was stupid and almost insulting to our intelligence, but after seeing your post, I would highly recommend seeking out and taking courses on Fair Housing, ADA, and other relevant real estate-related regulatory courses.

Have you done any detailed research on land availability near Sedona, regulatory issues, builders for the type of property you are contemplating, conservative revenue forecasts based on actual comps, cost of a support network (cleaners, maintenance, etc), cost of utilities?

So, almost surely not a build-able 1/4 acre on its own when you consider its modest size, odd shape, setback requirements and the easements.

Then I get a text today that they “had a setback” that they “slipped and fell” in the shower and “fractured a rib”.

It is an expansion through regulatory mandates.

I know this is a big case of shame on me for not knowing exactly where the ROW was when I bought the property but generally one assumes the ROW to a road is about a 10-15’ setback not a 70’ one.