@Sien Long Chong what types of regulations are involved for investors.

There are very strict rules on how you manage the investments held in these accounts, including the owner or the owners next of kin cannot use the property, sweat equity is restricted if you can contract the work out.

Your not going to regulate away greed or corruption, you are just going to redirect it through more convoluted avenues making it more sophisticated.

I took advantage of an FHA 203k Loan for financing the construction portion of my last flip and I will never be restricted to the regulations imposed by lenders again.

Its all about technology being used to create a free market where only a regulated market existed before.  

California is probably pretty strict. 

If I were to establish a REIT, does that fall under FINRA, SEC, or other regulation?

You can do as you like but bottom line it is the tenants that create the asthetics of the community.On a community as small as that I would only do what is necessary to maintain the community and anything that would contribute to higher rents.It sounds like a community that you simply want to skim off any profits you can and leave well enough alone.Simply enforce strict aesthetic rules on the home owners themselves to maintain the value of the community.

The house is in a township with strict guidelines for the lawn.

@Bill Gulley, if he's not too consumed with his Arctic expedition, could provide you more guidance w/r to lending and financing regulations in the U.S.A.