I have a strict contract in place which directly states that the guest understands it is a short term stay, that she does not have rental rights due to it being a short term stay, that if she wanted to stay longer, and a new contract would signed and paid up front. 

I invest in Union County and there are strict guidelines preventing this.You may be better off renting 1st floor to an extended family who utilize as per the lease the main floor and basement as well.Good luck,Chris

How would a TENANT violate housing regulations? 

Next look up the county's law and regulations.

Or is small multi family strictly based on comps during the appraisal process, and other local market variables?

I know there are some pro's and con's to Montgomery county such as strict inspection and permit rules.

Why should an HML deal with the headache of financing a primary residence with all the regulations that come by law?

If so, Fundrise, like all of the nonaccredited investor offerings are very new (only legal per Regulation A for a handful of years) and have penalties for early withdrawal.

As I have read in the Georgia regulations, a unlicensed assistant is allowed to do.

Now, do situations arise where we can't go strictly on this?