Consumer complaints are the number one way regulators catch people, followed by bitter ex employees or spouses, and by competitor complaints.None of this is relevant to the greater issue of if RTO or LTO are disguised credit transactions.

By perpetuating the social stigma of being a "felon"; denying access to employment, denying access to housing..you do nothing but encourage recidivism..and continue the vicious cycle..which is exactly what your government and for-profit prison industrial complex wants. - A productive member of society who was once a court date away from being a convicted felon. 

Is it correct that if you just get the lender to record a mortgage then there is less regulation vs. a more complex security?

If it meets code but simply wasn't permitted, you can probably rectify it with a few hundred bucks to your local government. 

I I know there are rules and regulations on Air b n b but would love suggestions on how to approach this situation.

I acquired a commercial office property in Tennessee with a 7 year lease commitment from the State of TN government.

@Ryan Keenan a conventional loan (the loans governed by Fannie/Freddie) you will need reserves starting with the 2nd property you own.  

Portfolio loans are governed by each bank's board of directors.  

That said, I do recommend knowing about tenant and landlord rules and regulations in your County.

But it's too late to switch by that point, typically, so they suck it up and have to pay that five figure transfer tax last minute.Box C stuff also aren't things that the lender controls, even though the government calls them "loan costs."