Granny flat

[Michael Bettencourt]

I have an sfr in with a  above ground basement( homes on a hillside) that I've been dying to build out into a granny flat or guest house and rent out. The long time tenants are all for it and even have a renter in mind.

The issue: code allows for a granny flat but it can't be a primary residence ie. I couldn't rent it which defeats the purpose.

The question: I've always been a risk taker but is this just dumb? What are the potential concerns, are there anyways to avoid them, and any other suggestion on the matter would be much appreciated!