I feel terrible walking away...but i was under incredible stress (not sleeping and eating like crap) trying to figure it out and make the quotes work by paring back finishes.

All help is appreciated and I feel really bad because my other tenants go to work and have children that go to school and they are not able to sleep properly because of the loud music. 

Will this lawsuit truly bring relief to renters, or is it just a Band-Aid on a much deeper wound?

Also, I was thinking about it and I think if you were going to make shared amenities (like fire pit) you probably would be very successful doing that strategy I mentioned for larger listings.For big dates I would have one listing that is both the primary and ADU that sleeps 12+, or whatever the number is, and then you can have the ADU and primary again as separate listings for the rest of time. 

It's tempting early on to leverage as much as you can so you can do more deals and keep liquidity, but increased cashflow especially with PMI will make you sleep a lot better at night.

Written policies are necessary when you add employees to aid with training or enforcement of standards.I would focus on adding doors to your management company.

Is there a defined definintion of occupany that mandates a set amount of days per month that I must sleep under the roof of my primary residence?

Learn the eviction procedure for your area, perhaps contact a lawyer in the field to help you with this one, and get the fraudster you're currently housing out on the sidewalk to sleep in a cardboard box where they belong.You're going to lose plenty of money here, but this will never happen to you again, and you can minimize your losses if you move as quickly as possible.

Challenge: It's in a neighborhood (no HOA), and renting the entire property (sleeps 25 in total) caused problems in the neighborhood, due to noise and parties – so we only rent the separate cabins now.

You can't get mutual aid (with a several hour ETA) in time to stop it.