If you buy a pre foreclsosure and sell it within a few years you owe the owners who sold it to you 70 or 80% of whatever you made.. thats why I no longer do foreclosure rescue.. it just takes one person to file a complaint with the AG in states where this is highly regulated and it becomes a very stressful for you.

Plus it would have to be a banger of a property for me to have that kind of confidence in it going the distance through all the market cycles, regulation changes, OTA market shifts etc at which point I may as well buy it.Which circles back to my original point- if I am not owning and benefiting from the appreciation, why should I absorb so much risk and upfront capital if instead I can find an underperforming property with potential, take a guaranteed return off the top and invest almost no money on my side? 

Also if there are multiple owners it ends up being like a HOA and I would view it as complete chaos on who is actually running the show.Why are you bullish over these vs. a traditional  Regulation A+ or Reg D 506c offering where you invest in the entire pool?

It's the same principle you would practice with a mutual fund: it continues to grow (hopefully) and you pay a tithe from the prophets received at the time the profits are received.I am not strict about this by any means, for myself or others.. what other people give is not my business and I do not believe in people giving under compulsion.

I would not try this in CA, where they are strict about building codes and have issues that other location don't (earthquakes, in particular.) 

Do you know if there's a government agency I should contact about regulations for group homes? 

Crowdfunding is essentially old-school syndications that use newer regulations that allow them to market over the Internet. 

However, as mentioned, it's more of a guideline than a strict rule.

Short-term rentals tend to do better with cash flow, which is increasingly difficult in a saturated, heavily regulated market.

These condo complexes have been used as STRs since inception so there's little to no chance of that ever changing in the future making this a safe investment in terms of changing regulations.