Thank you Frank, I currently cannot afford to go BIG, as the cost of land is prohibitive.

These are different depending on the state, but generally amount to:  - No legal standing, so you can not file lawsuits  - Prohibited from continuing operations   - Forced to pay fines, penalties, and back taxes.As note investors, we can usually get away with operating a note business without it being considered 'transacting business'.

The double edged sword is that property values are great but its cost-prohibitive for me to acquire anymore. 

Our Realtor Code Of Ethics (article 16) prohibit us from  soliciting properties that are already listed.Hence, a Flat Fee MLS listing service Brokerage will give the best of both worlds ... dramatic savings on commissions and you control your deal (showings, negotiation, coordination, etc) ... you are saving the Listing Agents side of the commission (you will be doing that work your self).Direct FSBO with no MLS exposure do not work.

But hey, it's my clients right to own, zoning doesn't prohibit in this quiet residential neighborhood. 

I doubt you would be able to use the same closing attorney if the lender's closing instructions prohibit second position liens.

@Sam R.Some states prohibit advertising the house.

Self-managing real estate can result in a prohibited transaction and leave you with all sorts of tax problems. 

Are you talking about local town regulations that prohibit short term rentals or is it on the state level?

The only way that this would be possible is if the transaction was not listed on the MLS which in most cases would require a client signed waiver (since the MLS wants to have all possible listings, it typically prohibits agents from listing off MLS unless there is a waiver signed by the client).Listen, I'm not saying that banks care about MLS rules or that ultimately they dont get their way 99% of the time, but I am saying that you are 100% wrong in your assertion that the rules don't apply to banks.