Permits are now required for all STRs, with fees increasing as of June 2024.

We had a 10' ceiling height on the ground floor and ended up dropping a ceiling below the existing floor to decouple the new ceiling from the floor joists. 

Did he pull permits?

In most cases, they learn of the transaction only when a Certificate of Occupancy (CO) application or a permit is submitted for repairs or inspections. 3.

I would suggest to check with your local laws first.Most likely you will need permit ( I guess you can get away without, obviously not suggesting that :D)) but possible) , also check your zoning.If not possible to create separate unit legally, I suggest not putting an oven in the basement, and rent it without, or live in it yourself

.* In Some jurisdictions takes even 3 months to just get a demolish permit (even though permit expediter can be used)* Because of these 2 above reasons, I would have to come with high money upfront as I would need to buy the property in cash.

John, not sure if you are familiar with the current STR situation in Huntsville, but the city has shut down STRs that are not zoned correctly and also not permitted. 

Make sure it's permitted, warranted, approved by the HOA, and all that other jazz.I wonder how long it will be before the electrical grid collapses.

Drop by your municipality's building, permit, and zoning office. 

The non-permitted unit is causing some troubles in getting this deal to move forward.