Converting 8 Unit apartment building to a Hotel/Bed Breakfast?

[Nick Rose]

I am getting details on a possible apartment building that is an 8 unit all brick historic building on the edge of a downtown area.  I am currently looking for a 12+ unit building in Michigan, but I was told about this building that is currently off market.   Word travels in a small town, and from what I'm told, the  owners are considering selling.  I don't know the numbers yet other than a previous asking price of 330K a couple years back.  My question is - what are the major road blocks for making an apartment building into a 'remote check-in' hotel of sorts?    I'm not interested in building a lobby, and having staff 24 hours.  The current 3 local hotels do this just fine for $320-700 per night.  I'd be interested in making this into something where users can contact me to check in online, and get a key code.  I suppose it would work much like a year round vacation rental, however I'd have to get the city to consider it a hotel/bed breakfast (minus the breakfast).   Not sure how this would work.  Recently, the city has banned all short term vacation rentals (<30 days) with the exception of a some that were grandfathered in.    Thoughts?

I may still be interested in buying it and continue to do year long leases.

The city is a small beach town that I grew up in, which is on Lake Michigan.  Excellent schools.  A new golf course and high end hotel were built recently.   1 block from quaint downtown area that overlooks the beach/river.