It is money from the government that comes on a monthly basis that you can depend on. 

It is the perspective of the board that this owner is not doing anything wrong and is not committing any wrong actions regarding the governing documents of this association.

it maybe it may not.. if you get to arguing it in front of a trier of fact then that is the deciding factor whether it is or is not.. and If you whole business model is to tie up and assign which is what 90 plus % of wholesalers do then regulators or trier of fact may deem it a Rouse to circumvent the laws.. 

Portfolio loans are governed by the bank itself.  

Investments from friends that would be provided in the form of a loan (similar to #2, but not a SDIRA) - are there any solicitation issues here that would violate securities regulations?

ROI= 9% with the $500 rent (even with the flood insurance).Good government jobs and schools in the area.

I know it's not the 25% but I doubt the government is going let me get away with all that profit.

@Kenneth T I am in shock right now how the "government" can tell a private homeowner what and what they can do with monies they receive!!!!!

You need to take the time to learn all your state landlord tenant regulations.

Other than signing a document that says you'll live in the property what other ways does the government track that you live in the unit?