Every time they pass a new regulation to clamp down on deceptive advertising, the marketplace just finds new ways to maneuver around it ("it's not advertising, it's journalism!

Under the IRS regulations (treasury regulation section 1400Z-2), substantial improvements requires that you invest at least 100% of the original cost of the current improvements on the land.

It's making sure that the contract itself is airtight, contains the right contingencies to protect your liability as well as the other parties liability, contains procedures on what to do if one party breaks the contract, etc....  

So you should look at Regulation D 506(C) as a vehicle to be compliant and attract Accredited Investors. 

How long is the eviction procedure in your location? 

I remember hearing, and I admit this was a number of years ago, that due to the overlapping patchwork of regulations, which sometimes meant even different people within the same local office would interpret/enforce things differently, that some investors had better luck asking or getting an inspection from the state fire marshal.I know it's a long shot, and that information might have changed since I heard it, but I thought there was a small chance it could be helpful anyway.

CA has some unreasonable rules/regulations but this one I think sets a good balance.

I would say that from my perspective as not only an investor that owns properties but an owner of a property management company. the one thing that you need to realize is landlords are the highest sued in real estate as  a matter of fact 1 out of 3 landlords are in some form of lawsuit or litigation every year for violating laws such as (IRS, Discrimination, Fair Housing, Fair credit reporting act, property code ) all governing bodies that protect and regulate rights for both tenants and owners.As owner of a rental property you are running a business, and need to have policies, procedures and structure.

You should always be compliant with the SEC and Regulation D 506(C) or B though C is what I recommend as you have more marketing reach. 

Which generally means not letting things slide, having policies and procedures and enforcing them consistently across tenants.For example, if rent is due on the 1st, then late fee notice goes out on the 6th (assuming that's what you have in your leases, a 5 day grace period), then if still not received, 5-day demand letter goes out on the 17th.