Remodel a 600 sq ft shed?

[Jeff Hsieh]

Hi everyone,

I have a 600 sq ft shed (build by the previous owner with permits) sitting in my backyard right now.  It has a new roof, basic framing, and electricity, no plumbing though.  Right now it's just used as storage and I feel like it's going to waste and the space could be used to generate income. It is attached to a one car garage with a wall and door, and sits about 5-6 feet from the back wall of my house. My idea is to turn it into something like a 2bd 2ba, with shared kitchen and living space, and either renting it out, or do airbnb.

I've never done any type of major remodeling or construction before: 

-Getting the entire project permitted by the city. Where would I start? Do i need to hire a designer to submit specs?

-Do I need to change the zoning from R1 to R2?  What's the likelihood I'll be successful here, or will this be a showstopper? 

-What's the best way to begin taking action here? I don't have any relationships with contractors, do I just start on Yelp?

-What else should I think about, and would this be a project worth undertaking, why or why not?

I'd be happy to clarify any details I may have missed.  Thanks everyone in advance for your thoughts and advice! 

Thanks,

Jeff