However, it’s important to weigh the benefits against the obligations and regulations involved in the program.

Understand Local Regulations: Dont forget to do your research.

Have you had any issues with the city regulations regarding STRs using this method? 

Regulations differ by cities, so you'd have to check for each market.

Of course there are nuances like everything regulated by the IRS but like I said it's basically not that hard to stay in compliance. 

You'll need reliable local contacts, such as property managers, contractors, and real estate agents.Regulatory and Legal Differences: Each state and municipality has its own set of real estate laws and regulations.

If you haven't already, I stronly encourage that you look into the local regulations.

In MHP's they are regulated like cars rather than real estate, but the renovation is mostly the same (sans foundation issues, and structural issues if leave the outside walls intact).

And just so we're clear, I understand the depreciation recapture, I am just unsure on the "nonqualifying use" regulation since the home was first a primary residency to begin with.  

A couple questions.. what are the regulations associated with doing this?