@Joel OhA regular insurance policy can refuse your catastrophic loss claim if they find out you were renting your house as an STR.

@Tyler Garza, "rent being paid by the tenant" is a flexible term. 

Even at 30%, that's still 15,000 potential prospects.What you want to focus on is a competitive market rent.

The STR market was great a few years ago but now too sure now unless you have a great location.

You can live in one unit and rent out the other three.

The rules regarding ADU renting varies by jurisdiction. 

Do you build it with the intention of renting it or just for family/friend use?

Plenty of STRs that perform just as good as the pool STRs because they have a great design, location, or other fun amenities that have less liability and headache.

More likely, he is hoping to use the extra time to collect more rents and thus more fees to generate the funds to pay his owner clients:(

There was quite a bit of unused land and the zoning gave me some flexibility if I wanted to expand various aspects of the property.Also the self storage units were all below market rent and the seller was willing to finance at a decent rate with a 5 year balloon.