In Denver where I invest it's actually a PLUS to not have the other unit considered separate because permits are only allowed for STR if you're renting out your primary residence and I know many folks who put a locking door on part of their home and have a separate external entrance to that part of the house, and rent it out as an AirBNB without it being considered an additional unit by the city.

Are there additional primary residence requirements such as homeowners exemption required, or anyone know if this is coming down the line?

Our traditional tenants handle small things like a light bulb out or running toilet but it's a something we handle for our PadSplit homes.

Charlotte is tough for buy and hold using the traditional rent model, but we are now a PadSplit community! 

However, I am the primary owner.Current Situation: My aunt’s daughter (my cousin) lives in the house rent-free.

From my observation/experience, Berryessa and Piedmont Hills areas are more family-oriented, so the demand there is generally for primary residences, renters, or travelers visiting families.

This is much much much faster and requires far less equity than if you compared that to say traditional single family rentals. 

Do you have over $200k in equity in your primary home?

I talked to two different local credit unions about pulling 300K in locked equity out of our former primary home that we converted to a short term rental last year.

It's generally a useful tool for an investor who is estate planning and has a step-up in basis event on the horizon and can liquidate out of the REIT easier than out of the traditionally held property.