In my humble opinion, once it's been approved, it would take a revolution to overturn it :(I am one of the probably hundreds if not thousands of small investors that got punched in the stomach real hard because of this situation, and I know there are several others out there (still ignorant to the fact) who will, eventually, have many sleepless nights because of this.I was very new and ignorant to real estate rules, laws and regulations when I started.

However, I have thought this may be too strict, and that maybe I should still "consider" a potential tenant--even if they smoke, as long as they understand the smoking policy and "promise" to only smoke outside.

Also around here on occasion calling around I've found some smaller banks that will do a no seasoning cash out refi with no out of pocket, but it's a 7 year ARM 15 year, and there are strict stipulations (like you can't have more than 3-4 mortgages already).Always looking for a no seasoning cash out refi at 75% of new appraised value at 30 year fixed...they are out there, but are usually 1+% higher rate. 

Syndications and direct ownership are very different from one another for a lot of reasons, but in the context of comparing them on a strictly financial basis there are enough similarities to draw some comparisons. 

Shouldn't there be stricter regulations on real estate licensees to protect the same "unsophisticated" buyer(s)?

I'm just trying to balance this with a lot of the advice here on BP about tenant screening, strict accountability, etc.  

Of course varies by local, but yours is way high and way strict; I have not researched other markets.

And I offered my opinion that such discriminatory programs are the result of shameless vote-buying by our elected officials.I have no inclination or even present opportunity to disobey this regulation.  

You will want to follow strict accounting and banking habits - do not transfer between LLCs directly (use a personal account).Of course, please consult the appropriately licensed professionals and do not rely on my sole advice as I am not an attorney, accountant, or insurance agent.Cheers!

Much like increased regulations, these questions seek little more than to increase the  barriers to entry for the wholesaler.