What you're trying to do is technically a "security" by definition of the SEC and they regulate it. 

RENTAL PROPERTIESThe first step in making rental income projections is to identify the rental market in which the property is located and consider the following factors when adjusting the future rental income: > Current rents > Caveats on rental increase and tenant removal > Market rents > Occupancy loss> Economic conditionsIt is important to remember that often the listed potential rents for properties may not be realized immediately and the future rates should be adjusted accordingly.HOSPITALITYHospitality is a cyclical and seasonal industry, making it difficult to accurately forecast long-term sales due to the ever-changing market environment.

So many abandoned buildings because the projects could not handle the city regulations and project meeting needs.

There are new pre-fab firms doing exciting stuff with innovative designs:http://methodhomes.net/http://www.projectfrog.com/There seem to be a lot of benefits such as building in a controlled environment, cutting down construction time (which mean getting to market faster, lower construction loan interest, etc.), faster permitting.

Do OSHA regulations apply?

I understand that creating a fund is expensive (mid 5 figures) and subject to SEC regulation.

See this link:http://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter1-2.htmlAnd there are some small municipalities that are starting to impose regulations on landlords regarding illegal aliens:http://campbelllawobserver.com/2012/08/rent-to-illegal-aliens-landlord-you-may-be-penalized/

I know city's/OSHA are involved to limited extents, but nothing like certifying an aircraft design to Federal regulations (FAA), or auto (SAE)…..so the RE industry just does not have as many designers/engineers that have been subject to advanced technology or design criteria.

It's BASIC real estate issues and transactions and RE financing rules, programs and regulations you need to concentrate on, not schemes.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.