Also interested as i'm in the research phase right now.
In answer to your questions. 1) You can move out if you have to due to a relocation for work, family needs etc. 2) These are very sought after. Instant added value, age in place, rental potential all very sellable, 3) you'd have to declare your intention with the city and probably have to give up your right to that spot, 4) yes and it will make a nice deduction as it will be used "exclusively" for your business so that will help with your taxes, air bnb and long term rental is totally allowed as long as you get the correct permits from the city for air bnb especially. I stayed in one in Portland for this exact reason in order to see what it felt like living in the DADU with the main house so close, so maybe try that out as an option as well before you commit.
https://www.crddesignbuild.com/cottages?hsCtaTracking=cc1c162b-cab3-41cf-9e17-7b64f859a8aa%7C7bfac8f3-95dc-4dc6-895f-d48280642a6d
This link explains a lot and more readable terminology than City Planning speak!
I'm interested in your financing options? I'm wondering which avenue to take on this whether I can take out a construction loan or just a small loan. I've found some good resources for prefab and modular spaces for both workshops and larger dwelling spaces.
www.studioshed.com (I don't work for them or benefit financially, i'm just a fan) is the one i'm leaning toward as we have a nice sized yard, South Beacon Hill, with an independent alleyway for access and parking and we can get the build for $80k including kitchen and bathroom, all electrical components, doors/windows etc (I would have to put it all together or hire someone to do that) but not incl permits, site work, utility connections and foundations.
I've been quoted in the range of $260-360K for a complete package with a design build service which is out of our league but the DADU' presented do look awesome.
Keep us in the loop and I will post back with more info as this progresses.
