I have had inspectors look at rooms on renovations that were not permitted (we weren't even doing work in the rooms) and asked that certain changes to be made to bring the room up to code (it was minimal).

@John Matthew Johnston 80% of the time, it's a thankless job:(You're never fast enough for complaining tenants, nor fast enough or cheap enough for owners.To have any chance of success, you have to be extremely organized, or every day starts with your hair on fire!

I have sold some properties years ago on lease options where the tenant buyers actually exercise their right and purchased the property. ( I was in the deed.)The reason I am concerned to tie another person’s property up  with the lease option is that people can change their mind, as in the seller.  

Sometimes using an LLC or similar setup can change how the income is taxed.

As other people mentioned the areas do change pretty quickly. 

The only downside with SC is the LTR pricing will be rough if you have to change course, so buy with that in mind.

That term is generally used when zoning has change, such that it if the structure were destroyed, it could not be built back. 

So, specifically I am still curious how someone would change their approach to branding/hosting from 2 STRs that are SFHs to a 10 cabin property.

On a per-owner basis the policies will change for occupants over the age of 18. 

Negligible changes called "diminimus" are the easiest, but they are along the lines of 1 foot out of a 50 foot setback.