Now you see how expensive dining and living rooms are that could be converted. 

Maybe I could convert my garage to a movie theater or something?

Any investor or developer buy raw land lot (zoning code G) and go through the process with the city to convert to commercial use?

We are planning to purchase a home and convert it into a community living space for people in recovery.

I recently converted my home into a STR.

I really like having multiple opportunities to make income from 1 property, including a worst scenario of converting all the units to LTR. 

With a large portion of the incoming migration coming from international residents moving to the District, emphasizing improving and bringing back Washington D.C. sports teams to the city should create a strong desire for domestic residents to want to live near a fun, community engaging activity that is very relevant to those that live in and around the city.The District also has other programs it is running to make the District more attractive to live in outside of just working in the area, such as the Office to Anything program (Source) and the Housing in Downtown program (Source) which will incentivize developer through tax credits to convert office buildings into new construction housing and new construction retail properties, which should continue to attract more residents back to the area.D.C. also understands that with all of these big changes we have seen, the strategy and allocation of resources from the government moving forward should be reassessed to create a city that is adapting to the future trends to remain a safe and desirable place for residents to live.

But as of today, I am strongly considering converting it into a single-family rental because based on some Zillow comps I’ve seen I could get upwards of $8000.00 per month which is more than double my mortgage, taxes and operating expenses.

Which is why you may want to consider starting in multifamily and convert them to airbnbs which is what I did for a while.Best of luck to you. 

Rufo, so you are violating the HOA rules so I don't think they would cover anything if it is the fault of your guests.This will eventually catch up with you and could result in some big fines so maybe think of selling this or converting to a LTR instead.