:)Appreciation is the gravy, it should not be the meat in an LO installment sale.To have a lawful and enforceable LO, the option price must be stated as to as a known value, saying the amount remaining due on an underlying mortgage on some future date is not an amount certain and is only set based on future requirements being met by the seller, as their obligation, which is another kicker to toss out a LO as there can be no expectations required by the seller and changing the type of contract.Investors really need to stop reading guru books on LOs and getting their plan off the internet, RE is local and laws are changing, seems like every week.You can't simply read a statute or regulation and take it in black and white as there is the intent of the law, the purpose, how it will be interpreted and unless you have a legal background you are guessing and you'll most often lean toward what you want it to mean, no one likes to read "no, you can't do that".Then you have the risk and reward analysis, slightly out of compliance with a great reward or way out of compliance with a small reward, is it worth it?

Are there specific laws/regulations?

The results will be legally drawn up agreements for your use.Just they way you communicate with a tenant is regulated.

Let me answer from a Property Manager's perspective: There is so much more involved than just collecting rent online and making a phone call to the handyman.There is a lot of bookkeeping involved in collecting rent, due to the dept. of real estate regulations, as well as making the correct deductions from the rent and processing a check for you.We take all kinds of calls from tenants that you probably never hear about: They call to explain why their rent will be late, questions about moving people in, calls about someone moving out, calls about questions on their lease, the landscaping, ants they found on the counter, you name it, they are calling all the time.We also do frequent drive-bys of the property to make sure everything looks ok: landscaping, not too many cars, trash, whatever out front.

Until states decide to specifically regulate (like California which has its pros and cons) this will continue to be a grey area that we encourage you to discuss with your legal counsel in your state."

(some regulations apply)When the loan goes to foreclosure sale, regardless of whether it sells at auction, the loan is written off.

Seehttp://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in-lending-act-regulation-z/

Many COA/HOA's don't like rentals, for some legitimate concerns and some non-legitimate reasons, and this is one way of making the boards feel more secure.Ask them for the regulations requiring this.

As you might expect matters around financing, regulation and taxation will be different if you are investing at home.

In WA I have seen ones that the HOA was just for upkeep on property, rules and regulations as well as ones that act more like condos.