Split level; section off to house hack?

[Keith C.]

We have a split foyer. No kids yet, just dogs. We only live upstairs and only go to the basement for laundry.

Our basement is finished. We would have to take half bath to full bath, section off split level with locking door (separate French door access for prospective tenant already); finish utility room by adding small kitchen.

We will need to put our own laundry upstairs.

Then it would be a full basement apartment (water access neighborhood, boat ramp, etc Annapolis, Md 21403)

Questions:

Should we pursue all those upgrades?

Should we Airbnb or long term tenant

What are typical laws we need to consider or restrictions

Any other major considerations we are missing?

Thanks!