In this case, a room conversion shouldn't be a huge project, so I would expect a permit to be on the lower end of the cost spectrum (if you need one at all).

It's less likely (in my opinion) that governments will pass broad, sweeping legislation against STR's in an area that they've already established a robust process for how someone can do it legally.

Are you looking to just serve Colorado / full spectrum (including owner-occ, house hack, etc.)?

Unfortunately, my broad experience doesn't cover capital raises in the exempt market.Thanks,John

On the other end of the spectrum, when there's something I don't know, I am not ashamed to ask a man for input and gain the benefit of his experience and talent.

@Mike K.Congrats on your success.If you're trying to justify your investment versus REI, you will need to take a broader approach, since REI is so broad. 

The answer will be dependent on your fact pattern, so a general forum like this may not be able to answer such a broad question.With regard to the LLC structure, note that CA does not recognize series LLCs, and CA tends to have a broad opinion of what constitutes "doing business" in the state, and therefore, what LLCs need to report with the CA Secretary of State and file appropriate tax returns. 

Though self-direct rules allow a broad range of investments, these companies restrict you to their stocks, bonds, mutual funds, etc.

Further, there are a wide spectrum of lenders that can range from very good to very bad among lenders that brand themselves as "Private Money" "Hard Money" or "Private Lenders"Your best bet is likely to follow reviews and like you've been doing now with partnerships that you trust, but your instinct is right to have relationships with multiple lenders and options. 

@David C.if you don't want to own individual properties, then yes, syndications are one option along the spectrum of passive.i am not 'recommending' them, because they are not something i have much knowledge of.