Are you planning to manage and fill beds yourself or are you thinking of subleasing to treatment center?

For it to be legal they need to have an ongoing relationship with a certified mental health professional, who has the correct certifications to write an ESA prescription, that you can call and verify the presence of a disability requiring a service animal as part of the ongoing treatment.

I mostly work in the retail medical space for Urgent Cares around the country but there can sometimes be some med office overlap there, and we are shopping more of it for an addiction treatment project we are working on in a couple states so I see more and more of it come across my desk.  

The issue is many preparers have defaulted to Bed and Breakfast treatment which is usually incorrect for a normal STR.

This is different than acquiring an investment property with the intention of holding for appreciation and rental income, which does get capital gains treatment, subject to 0%-23.8% federal rates depending on income and circumstances.

https://www.biggerpockets.com/forums/530/topics/1056436-clearing-up-confusion-on-tax-treatment-of-short-term-rentals

If you have cancer...you don't care if your oncologist has had cancer, you just care if he is the best to solve your problem. 

My only other option is to do spot treatments on the half that I own and call it a day.

Don't let the tax treatment stop you from making the right decision for you.

However an FHA/VA loan will always be subordinated to a conventional loan due to the extra costs that come with accepting a va/fha loan like possible termite treatment and lender required repairs.