Big cities tend to have more regulations, more crime, more leftist-leaning policies that hurt investors and private property rights, etc.

One tip: focus on areas with year-round demand and check local regulations early—they can make or break a deal. 

Are there any rules, laws, or regulations regarding this?

Needless to say, many parties are involved, and they all need to be established and verified, or your business will suffer greatly. 

@Jonathan Greene @Jay Hinrichs @Nicholas L.Note: Each state has their own way of handling and regulating foreclosures, and as someone who is not specializing in foreclosures I can give you only general ideas and information. 

LLC's separate your personal assets from your investments and offer you protection from lawsuits related to your property, they can help to establish a more professional image if you plan to expand, and they provide some flexibility on how you are taxed.There are some drawbacks, included fees and administrative work, but it's ultimately best to consider speaking with a CPA to determine the best option for you. 

SFHs are largely exempt from many regulations such as rent control.

Even with a great opportunity, trust is the foundation of any partnership.In my partnership, we had already worked together on multiple deals—me as the agent and him as the investor buyer—so we had established a strong foundation of trust.

Careful going outside state lines -- contract for deed is not allowed in Texas.I didn't think COD is illegal in Texas, just perhaps not recommended anymore, because it is difficult to comply with the rules or regulations. 

Bacon is more yummy than a Christmas tree, but I bet I'm going to have a whole lot less regulation growing Christmas trees... however, before we even get to that, it's necessary to know that the inquiry is even about bacon v Christmas trees, rather than Bacon v grapes.