Liabilities: massive differed capital cost as sludge accumulates in lagoon and then must be removed every 20 or 30 years, potential groundwater contamination from partially treated wastewater leaking out bottom of lagoon, huge amount of land required for lagoons (1 to 3 acres for 50 space park), inability of lagoons to remove nutrients (nitrates under new regulations), irradict / poor treatment during winter.

In Ottawa, rooming houses (like you are proposing, renting by the room) are more strictly regulated.

.), have high replacement costs, and are subject to risk of increased regulations.

Account ClosedGo to the Biggerpockets toolbar and click on TOOLS ~ select FilePlace ~ then select Contracts as there will be numerous of templates that you'll be able to choose from...

Different states exercise their own regulations concerning what permits and licenses are necessary to flip homes and that the investors should research and know what type of permits and building requirements are enforced in the area.

I have also done numerous google searches trying to find this answer and I just can’t seem to find the answer.

I asked how he knew, he said it's essentially a scam/rip off that he's heard about numerous times and sometimes the home inspector is in on it and gets a kick back. 

https://www.nar.realtor/being-a-realtor/personal-assistants/state-statutes-and-regulations-for-unlicensed-assistants

For legal basement suites you may need to do upgrades to meet fire regulations.

Regulation changes can crop up suddenly and severely restrict STR owners.