Also, streamlining the permitting process could speed things up even more.

I'm wondering if the same lenders who financing STR's would consider Padspits.You may want to check this, but I would imagine that renting via Padsplit would be considered as a STR which have been highly restricted in the city of New Orleans, and the only way you can get a permit recently is to also live in the property.

Verify the zoning laws and any required permits to ensure the property is suitable for your intended use.

The hassle with permits and the municipality was real.

Your budget can not dictate the safety of the project and your relationship with the town and permitting.

I can give you some more specific advice on permitting processes and building. 

A lot of people shrug off Modular and Manufactured but they are both cash cows and help avoid longer construction times, higher material costs and less permits. 

The city is very open to this setup, with a clear permit process: $500 initially, plus a $100 inspection fee.

According to planning, only 1 and 1/2 story is permitted in this neighborhood.There are some consideration yet to be taken at this point.

Need to keep in mind STR license / permit restrictions when evaluating.