I guess the only real task on my part would be to monitor the content users are posting for compliance with "fair housing laws" etc and respond to complaints.

Also - even over-disclosing your purchase and subsequent sale details to all parties involved I fear will STILL not guarantee exemption from non-compliance and possible civil or criminal sanctions given the wide latitude on interpretation of what constitutes a badge of fraud that Freddie's opinion has over ours.

They say you get more flies with honey than with vinegar, so I haven't actually done that yet, and I'm not sure it would make it any better (and quite possibly worse).I know some of you use the "carrot on a stick" method by offering some upgrade or service with the rent increase as a way to increase tenant buy-in and compliance.  

Evidence of actions taken or not taken by the owner of a pre-1978 rental property or childcare facility in compliance with applicable public health laws and regulations concerning lead may be admissible evidence of reasonable care or negligence.

Have the attorney set up both your Lease agreement and Option agreement in compliance with the Dodd-Frank Act.Go for it tiger, that should get you started.

*I'd find the applicable codes (county, city, etc) where they define "bed and breakfast" and do all that it says to the minimum--I know that many areas are REALLY cracking down on STRs so assume you'll have someone come by and check your compliance.  

One note about mortgage fraud that I was told from someone who works in an investigative capacity in the government, is that since mortgage fraud is widely prevalent, it is often used as a tool to threaten someone into compliance for assistance in helping to solve other crimes.

Even if it was built out of compliance with the codes at the time of work, you may very well be able to apply for a retroactive zoning variance, especially on the grounds of financial viability being compromised.  

In the absence of meeting a criteria for no fault termination, you cannot legally get rid of the tenant if they are paying the rent and following the lease (which you have no lease so they are automatically in compliance with the lease). 

There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable).