They were surprised at how I found the deal.I guess my question is, what should I expect them to to for me?

I'm guessing you feel pretty dumb right about now.

I guess my question is: How do I go about finding this property?

I guess his confidence is his lawyer told him if he has a buyer before this redemption period ends, he can likely get an extension.....

Ben, This is a quote from https://barneswalker.com/seller-financing-restrictions-under-the-dodd-frank-act/A lease option contract where an owner rents out residential property to a tenant and gives the tenant an option to purchase the property after a specified period may also be subject to the new Dodd-Frank Act, if any of the rental payments are used as a credit toward the purchase price or create ownership equity in the property.As you describe your 'rent to own' it would fall under this rule.If you use part of the payment for the purchase of the home, or extend credit for such purpose you fall under Dodd Frank.So- my best guess answer to your question is if you are doing rent to own, you need the licence. 

I am a little worried with investing in SFR in Las Vegas, as the market does seem to be cooling off a bit though with rising inventory, but I guess that could be a good sign for buyers? 

I'm guessing it's likely pretty low (<6%), which if that's the case that is an incredible amount of risk exposure you would be taking to pay off a low interest loan. 

@Walter Aaron Poling, thanks for the response... that’s what I’ve heard and read.. guess they were just THAT hard on it.

I guess we'll find out where the ceiling is naturally, as senate bill 225 (rent control) is stalled for the time being:https://www.denverpost.com/2019/04/30/rent-control...

I guess I’m wondering if it’s worth investing time into trying to obtain the variance or just move forward with housing.