Specifically, demonstration is complete and electrical and plumbing have started.

Could you have the house rewired and plumbed by the world's slowest plumber and electrician?

One thing to take note of is that a lot of places that are established STR markets have regulations stating that you have to honor future bookings.

Neither do the Regulations 1.761, from what I can tell.Further, in the 2018 Argosy case where the taxpayer was a H/W LLC, the Tax Court said: "...Petitioner contends that a Mr. and Mrs.

Keep in mind all this stuff is uber regulated, very detailed, far from simple.

Just got off the phone with the zoning guy and he said since both of my lots pre-date the zoning regulations in the city, they're grandfathered in so-to-speak, which means I am able to build a single family on each one!

However, the market is competitive, and rental regulations are becoming stricter.

Very good point.In the case of Arizona, I have been unable to locate any state law / code that suggests Arizona may have additional regulations. 

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense. 

As for Alexandria specifically in terms of regulations don't take advice from a public forum - look up the laws yourself and make sure you understand them.