What we need though is a standardized way to measure the metrics.

@Reesey Ann - To this point, you might want to invest in some security measures to ensure this does not happen again.

Having said that, there is no problem having SMART compassion and taking safety measures (15 months rent in an escrow account). 

The homeowner measured  WRONG .   

However, if communication continues to be lacking, or if you receive inconsistent updates, it’s crucial to be prepared for the possibility that you may need to pursue legal recourse.Protect Yourself Moving Forward: If you do recover your investment or start new ventures, consider more stringent due diligence in the future.

A few things you could consider:House Rules: Make sure you have clear, firm house rules for your STR guests regarding noise levels, shared spaces, and respecting the privacy of your LTR tenants.Noise-cancelling measures: You could invest in things like soundproofing the walls or adding landscaping (like thick bushes) along the privacy fence to further dampen any noise between units.Separate Access: If possible, ensure that the STR and LTR tenants have separate entrances or parking areas.

Oakland does have a very stringent requirements for their STRs.

The city inspection was more stringent.

The appraiser isn't an engineer and I wouldn't trust their measurements.

I’ve considered a construction loan to build everything at once, but the stringent conditions and potential delays make me hesitant, especially since this would be my first time seeking such a loan.I would appreciate any advice on the best way to make this work.