@Richard Chang, Question #1 The world of fractional ownership is the wild west with little regulatory consistency in product or platform.  

If it's a tax credit deal, there would have been a regulatory agreement executed as part of the loan docs.

You will need closer to $10k before it is all said and done unless you cut corners which could jeopardize your interest in the property or create additional costs, regulatory concerns and issues with bring the REO to market.  

The bank might not want to put in writing that they are waiving their right to acceleration (due on sale) b/c of regulatory issues.

It has put many small operators out the type of operation you are describing.There is also the issue of being in Compliance with numerous state and federal laws and the only way to do that in a manner that regulatory agencies will find acceptable is to have a formal Compliance Management System in place and actually in use.

I don't know anything about Atlanta or College Park, so it may be a different regulatory environment down there. 

I think the city involved would learn an expensive lesson if their zoning code was taken to court.This is a totally new wrinkle so it would require a regulatory attorney willing to be at the forefront in landmark court decisions regarding Fair Housing.

There are a lot of regulatory and compliance concerns with doing such loans.

Many attempt to call themselves private lenders to avoid regulatory matters, that won't work being in the business of lending for anyone. 

It is not an absolute requirement but Texas more than other states seems to focus on other than same-day transactions due to heavier oversight by their state regulatory body, which does make transactional funders less comfortable.