If you're buying from an individual, it's unlikely that their contract prohibits an assignment, as this is generally only seen in Bank contracts.  

The building is well maintained but I think it wasn't all updated with the latest wires so getting more electricity lines to the unit would be prohibitive. 

HUD has a good multifamily program or larg(er) dollar projects, and the terms are unbeatable, but the closing times are generally prohibitive as it can take 9+ months to close.Outside of HUD, your best bet is going to be local lender who is interested in deploying their funds in their lending footprint.

-------------------------------List of Ineligible Project CharacteristicsProjects in which a single entity (the same individual, investor group, partnership, or corporation) owns more than the following total number of units in the project: projects with 2 to 4 units – 1 unitprojects with 5 to 20 units – 2 units <--- this is youprojects with 21 or more units – 10%-------------------------------I'm not the boss of anyone's HOA, but if it were me I'd go ahead and put something right in the CC&Rs prohibiting anyone from buying a unit if said purchase would mean that Fannie wont lend on any of the units. 

Many lenders have overlays prohibiting "rapid acquisition," but fannie/freddie themselves have no such prohibitions. 

Are there any unique real estate laws in Houston that might inhibit/prohibit someone from investing in real estate over there?

That would create a prohibited transaction.

The big issue with condos are the risk that HOA dues go up, potential very large one time special assessments, or bylaws currently prohibiting rentals/ the chance that they forbid them in the future.I don't know that this is a homerun. 

At under $100k in SE or SW FL you are looking at condos only.....most will prohibit STR’s.

To me, those factors make it prohibitive to invest here.