I've been told both extremes by several different people, but that's crazy to hold the agent responsible when they're forcing this arbitrary rule just so they can go after agents and brokers for something they had zero control over.  

Further, these “asset protection” methods are under constant creditor attack through the courts, meaning they are probably of benefit only a short period of time, UNLESS, true CONTROL of the asset is given up.  

What I struggle with today is how to attack it.Option 1, which was my original plan, was to get control of a $1-2MM property using mostly borrowed and possibly silent investor funds.

Your lease agreement is going to control your situation, unless your state statutes have something on point (unlikely to your situation though). 

Afterwards pretty Passive, plus we are in control.

Next year the HAP payment could change entirely and you have no control over that.  

Jim invested in a small apartment complex, and within two years, not only did the property's value appreciate significantly, but the rental income also provided a steady cash flow.Real estate offers a level of control and tangible value that can be really rewarding.

Local Regulations: How do local landlord-tenant laws, rent control policies, or other regulations affect investment profitability?

I swear I can't control it... there's this sarcastic voice inside me that just takes over.'

If experience is the lone qualification, you can align with a good realtor and contractor and maintain far greater control along with benefiting from all of the upside.