Given the fact that so many people have jumped into the STR market, as if it were the next gold rush, even traditional vacation destinations must be contemplating regulations to protect at least some work force rental properties.

Depending on the services included, they can also arrange to make the required tax documents at the end of the year, a 1098 for the borrower and a 1099-int for the lender. 

For those of you who have bought an SFR investment property with a co-investor under this type of arrangement, could someone help me answer the following question?

Btw for everyone reading my comments prior were based on shared equity of owner occupied homes. good point owner occ loans would require a RMLO to arrange those loans in CA and pretty much any other state. 

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

What can be done about it is - whoever benefited from receiving the money (otherwise known as theft) - can arrange to pay it all back....

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

I have an existing arrangement with my lender that as soon as I'm done rehabbing both units I can cash-out to 80% of the ARV by increasing the loan amount (they'll just fwd me the funds)...so I'd like to not drag this out any longer than necessary.how would you handle this?

If it's a foreclosure that allows one, they likely have arrangements for buyer to pay to turn on utilities, and you just follow their instructions. 

The company/platform was a “player” in the residential investment arena, but had only done one transaction with commercial property, and that was a smallish (12 unit) apartment building.We worked out a fee arrangement, I identified a commercial property (office building), tied it up with the standard contract, and led them through the transaction.