After reviewing the city ordinances, I have a couple of questions about STR regulations.

Hi Kailas - Yes, you can typically rent out the main house and the ADU to separate tenants on separate leases (so long as you're compliant with city regulations/restrictions).

Private placements are inherently risky by that very fact - they are not regulated or audited  to the degree that a publicly traded company is.  

@Edgar PerezGo with a sober house, zone it as a lodging house to circumvent any state regulations that may dictate what you can and can’t do.

I got a good deal on the house, but do not want to invest in it if I would be out of compliance with renting regulations.

There are also very strict regulations on who can invest in the stock market.

If you manage homes built before 1978, there's a key regulation to be aware of: the Environmental Protection Agency (EPA) requires property managers and Landlords Nationwide to be certified in lead-based paint handling.

Biggest pati le is getting approved from VA and bringing property up to regulation.

What are the special regulations that I need to know in order to flip houses?

You're absolutely right—some investors still flock to cities like New York and San Francisco, even though these places come with more tenant-friendly regulations.