I own a mortgage company, so I have my loan officers use this Fannie Mae income calculation tool for all business for self borrowers: https://singlefamily.fanniemae.com/applications-technology/income-calculator .

Have you spoken to multiple banks and loan officers about your situation.

We simply include the tax on the invoice sent to guests, which makes it easier to track and ensures we're covered for tax purposes at the end of the year.For Chicago, I’d recommend checking directly with the city’s tax office or a CPA, but generally, you’ll need to register with the city, collect the hotel tax from guests, and remit it on a regular schedule (likely monthly or quarterly).

Sometimes you will get a seller who comes back and declares they want off of the loan, or a nasty letter from an attorney saying that you ripped off their client, or a letter from the State Attorney General that you get to visit them in their office.

Either that or gping with my other option of installing a bathroom on the second floor and including it with the garage as an office space.

Bonus points if you can convert an office space or finish a basement.

Still, you may not have to submit your tax returns. more info would be needed to know for sure, reach out to a seasoned loan officer for pre-approval and see if your situation would allow for this. 

Loan Officer, Brave Mortgage called me and we started a refinance option to be able to hold the property and get out of the balloon payment.

Quote from @Doug Smith: When we started this company, I had been a special assets officer (handling non-performing loans for banks trying to extricate them from the deals with as little damage to them as possible) during the last big crash.

If your exemption is already in place, it's unlikely you'll lose it unless there is some reason for the Assessor's office to look into your property.