Doing some RE consulting for a client involved in a value-added industrial investment in Miss.Utility company quoting 65% markup on materials (25% for E&S, 20% for Minor Mat, 20% for Material Handling).Have never seen such a high markup even in unregulated private industry and generally utilities are highly regulated.I am thinking even IRS may have some regulation on how much maximum mark up on materical can be.Please help with your knowledge.

That would make sense but absent that, they have a duty to shareholders and the FDIC (Assuming they are FDIC regulated) to market the property for sale in a reasonable and logical manner.

We have a maximum allowable which aligns with our city regulations.

Does anyone know if there are particular regulations around this?

It will Never happen....lenders have regulations about who they can sell them to, it may be bundled up with other notes and 22 other reasons. 

Future regulations are to provide further guidance for this test.

California is one if the states that has regulations about who can contact a preforeclosure homeowner.

What usually kills the cash flow is the HOA fee and personally I don't like rules and regulations that are ever-changing that may restrict rental rights.

Lastly, I know all local governments are seriously considering regulating pools (and elevators) on STR properties the same way they do in resort communities and hotels.

In other areas they would need to be evaluated for local regulations, etc.https://encinitasca.gov/praduGood luck