It’s always a good idea to consult a local real estate attorney and title company for more accurate estimates in your area.

Consider hybrid strategies, such as mid-term rentals, to bypass stricter STR rules.Engage a local real estate attorney or consultant to identify flexible markets and ensure compliance.

It’s always a good idea to consult a tax professional or real estate bookkeeper to ensure you maximize your deductions while staying compliant.

They most certainly should seek legal opinions and consult with government agencies. 

Regular Inspections: Conduct frequent site visits to monitor progress and ensure quality standards are met.

@Eva Sha - Yes, I generally advise emerging developers there will be anywhere from 5%-8% in closing costs (depending on the size of the loan), which include lender costs/fees, attorney's fees, and title fees, plus any other consulting fees.

Great points from @Doug Smith and some I will be leveraging in my own work.We do some "pitching" of startups to landlords and while not a 1:1 comparison we generally also leverage the credibility of the team or consultants that the startup is using to mitigate their risk. 

It’s crucial to run the numbers and consult with a lender who can tailor solutions based on the specific investment goals.Best regards, Stevan 

You should also check to ensure they have Errors & Omissions insurance, Fidelity Bond coverage, and a Financial Institution Blanket Bond.Some are more consultative and advisory and provide guidance, while others are just processors. 

I would definitely consult with a lender first since I am not completely sure.