That depends on the city and regulations for instance in the city of long beach it is very difficult to change zoning. 

Understand that Qualified Intermediaries, in general, are not licensed, regulated or required to be insured or bonded and have no minimum equity capitalization requirements. 

Also, there is continuing education between each renewal after the first.The Illinois Department of Financial and Professional Regulation has a list of the Illinois Approved Real Estate Schools.  

@William HochstedlerIt's still possible to purchase properties that cash flow day 1 because of the low interest rate environment that were currently in. 

Check your local regulations for legally being able to manage properties.  

Proper servicing is not just a matter of payment accounting it is a matter of regulation.  

And as Thurman stated, the zoning is changing and they may tighten up regulations on renting.  

Are they any laws or regulations that cover this type of deal in your state and area?

That stuff is outstanding, can be cut to length(comes in rolls), wrapped over itself, is self-regulating (doesn't heat up unless it's cold) and generally fire-safe based on the way it works. 

To those that are getting started or thinking about getting started in notes, I think you will find the environment refreshingly different than other avenues of investing.