I'm looking for a very "in the know" agent in Houston who can help me learn local regulations and buy legal, code/bylaw compliant STRs in the Central Houston area.

You just need to be sure those contracts are compliant with your states and are designed for the intended purpose (BP did an awesome job putting those together: http://get.biggerpockets.com/forms/index/)But when a lot of money is in the balance or complex/specific things are required, it might not be the best solution.Here's why:1.

To be compliant in bathrooms and kitchens you need GFI circuits and those have to be grounded.

Well, as I understand it, if the servicer is audited (which FCI definitely is), they will be fined for servicing a non compliant loan.

I'm just the messenger.Read this white paper on how to structure a lease / option followed with an installment sale with 4 or fewer installments for the residual value of the MH.http://mobileagency.com/docs/Lease_Option_Article_...This website was setup to help MHP operators learn the legal issues with rent to own vs financing.http://leaseoptionmhsales.com/welcome/The short story is:  Dodd frank compliant transfering title works with asset that depreciate very quickly.  

@Chris CondeMake sure to read up on this code for starters, MINIMUM STANDARDS OF FITNESS FOR HUMAN HABITATION (STATE SANITARY CODE, CHAPTER II)http://www.mass.gov/eohhs/docs/dph/regs/105cmr410....Notes: Be wary with numbers of electrical outlets, ceiling height of rooms, wary of fire codes as a code compliant fire detection or extinguisher system may be required. 

what is needed to make the non compliant unit legal?

"I've counseled clients in the exact same situation in Pennsylvania on the proper steps to comply with the 5 year look-back penalty under Medicaid rules using a gifting and Medicaid compliant annuity strategy.

The line I find my HOA walking on  is both, fining the owners because their tenants aren't compliant with the new rules, and reiterating the idea we're simply acting in the best interest of the owner's/property.From an enforcement perspective, it hasn't been too rocky.

You will be compliant with the law and you'll make much more in the long run especially if you hold on and gain more equity with your buyers!