Under Contract - non permitted Bedroom

[Reese Newell]

I am under contract for a property roughly $10k under comps at $495k.  I planned on using it for a short term rental in Florida.  It is listed a 4/2 although the inspection came back as a 3/2.  The inspector said everything looks fine and to not worry about it further.  The seller's disclosure had a box that they did not want to check stating that they knew about the addition which was a garage conversion in to a 4th bedroom.  Upon catching this (as a first time buyer), I contacted my agent to discuss the issue.  Fortunately, I do have an out with the inspection contingency still.

Essentially these are the options, I can go through with the purchase, and the property taxes will be lower, and it will likely be fine.  However, for short term rentals here in my county, the code officer comes by to inspect the property.  I believe that they just look to make sure everything is what is needed in an airbnb, but I am not sure if they pull up the bedrooms and tell me the 4th bedroom is not permitted and that I need to get it up to code.  If they do, I will be on the hook for it.  Please advise as this is a difficult situation as a first time buyer.  My gut tells me that because the code officer comes I'm taking on an extra risk and would need a larger discount for the property purchase.  I don't want to run in to extra issued on my first deal as I am already taking on renovating the backyard as well as furnishing it and setting it up as a short term rental for the first time.  How common is this? How would you approach this?  Thanks so much, this first deal has been exhausting.