Green card/Student/etc etc permits/visa. 

This is who will approve or deny your plans when you apply for a permit.

Possibly already permitted outbuildings that already have plumbing such as workshops, offices, etc might be able to be converted to an ADU at a cost that does not result in the cost being more than the value added.Building an ADU is a lot of work and can be a slow process.  

Renting your primary home to yourself is not permitted by the IRS, as it does not create a legitimate landlord-tenant relationship.

Research local regulations and permits for STRs in your chosen markets to avoid surprises.

Insurance is something you don't need until you need it....In my market the city requires a certain kind of policy in order to have your permit issued. 

We didn't because we needed to provide POS in order to obtain our STR permit being that previous owner had a permit on the property already.

It is very time consuming to get permit approvals and you may be in a position where you need to extend, pay fees, etc.. when your loan is past due.   

If so I would thoroughly ready this to see what they require and what you agreed to.I doubt you can keep your permit if you refuse their inspection.If you are doing everything as you should, you shouldn't have anything to worry about.

Also know that building a home seldom goes as expected - I have relatives that just built a nicer house… they thought it would take 9 months… it literally took 18-24 months between delays in permitting and the builder just not being able to get it done in a timely manner - often due to sub-contractor issues.