As you indicated you have plenty of options to start.

There is an incredible amount of points to consider when weighing the options on something like this and honestly, I don't recommend it to very many people at all ....even seasoned tradesmen and investors.

It’ll save you headaches later if she tries to escalate things.Document Everything: Take pictures, write down the history of your interactions etcOffer a Transition Plan: Just like my client, I’d recomend offering her a temporary storage option nearby, or even a small rent discount, to show you’re not trying to kick her out - just keeping the property safe and up to code.

Quote from @Samuel Pavlovcik: @Nicolas Tow Your Architect is correct that it sounds like the only option for you would be to obtain a Zoning Map Amendment to change to RT3.5 or higher.

Hard money rates are really high right now, plus the rates once I cash out refi are high making it seem like the only option for me, but with the rates on both ends, just doesn't seem to justify.

Keep providing value add options for your owners & they'll keep knocking.

We don't have that ability yet, but we are working on offering this option to members in the future so you could poll about specific locations!

I do have monthly mortgages to be paid and not having rental income to offset my negative cash flow has been a learning experience and really trying to think of what options I have to have better success at this.

These solutions can make a huge difference, and the long-term option will really help set your STR up for success.

And, perhaps most importantly, make sure you have access to flexible financing options that can help you adapt to new market conditions.