My capital is tied up in that home and I have a vacant property sitting there not being used and the demand for short term rentals decently high in this city, a concept tested by other 1bed/1bath small cottages.

Look at Joanna Gaines' house flips for ideas or open up a Pottery Barn or one of those cottage/thrifty magazines.

Government cheese and powered milk.  

It depends, if it is only a wall or two I would probably paint it especially if the home has a cape cod/ cottage style/feel to it.

We bought a SFH with a separate detached cottage and rented the cottage out to someone in healthcare.

My typical response:Hi ___,Unfortunately we have another guest who is checking out this morning and our cleaner will need the entire time to flip the cottage for your stay.

As Disney opens up to much higher capacity I’m assuming things could be better than I anticipated.I bought a villa also, not a cottage. 

At 12 I started a bait stand on the road above our cottage (my mother helped set it up) because I loved to waterski and needed gas money. 

Or a Cheese steak sandwich.  

We bought a 1940 built rock cottage near downtown Weatherford, TX we intend to transition into a STR.