So, I’d dig into the numbers before making a call.Local zoning and code regulations: Converting a multi-family property to a single-family unit might require permits or specific approvals, so check with your local building authority to avoid surprises.

Often times there are bedroom size requirements, residential sprinkler system requirements, among others.You'll want to then check the state regulation agency and review their requirements and licensing process. 

While it's a great spot with a ton of tourism unfortunately, it seems the hotels view STR's as competition and have helped to encourage the strict regulations.

Is the higher cash flow from short-term rentals worth the additional effort, or does it come with too much hassle in terms of turnover and regulations?

Whether it's regulations on eviction, tenant rights, or property maintenance, being aware of these rules can save you from future headaches.

Understanding local laws, tenant regulations, and tax implications is also crucial.

I'm kind of picky about what I allow though and I have strict pet rules in hopes of turning careless owners away.

SC Coastal towns have gotten very strict with licensing, regulating, and permitting for STRs.

My two cents would be to start with a solid business plan that accounts for phased development.Also, even though you're outside city limits, keep an eye on county regulations.

The situation in VT with regulations is just terrible right now.