App_...If the failure to comply with s.83.51(1) or material provisions of the rental agreement is due to causes beyond the control of the landlord and the landlord has made and continues to make every reasonable effort to correct the failure to comply, the rental agreement may be terminated or altered by the parties, as follows: (a) If the landlord’s failure to comply renders the dwelling unit untenantable and the tenant vacates, the tenant shall not be liable for rent during the period the dwelling unit remains uninhabitable.So Thomas S is wrong.   

@Charlie Vollers,Yes, in Denver, I've seen many examples of the duplex getting divided into two separate deeds and sold off as two individual "half duplex" or "townhome" or "single family attached dwelling".

@Deanna BoucherYou actually need a Dwelling Fire 3 since it is occupied by renters.

Does the home have to be classified as a multiple family dwelling by the taxing district?

The details:STR owners must obtain a $119 STR license.Can operate one STR in any legal dwelling unitR-1 properties can do one STRR-2 properties can do up to two STRsR-4 properties can operate up to four STRsThis does mean that if you have a single-family home, zoned R-1, you can NOT operate multiple Airbnb room rentals.

Homeowners insurance will cover only the dwelling such as the walls and floor/roof and everything permanently attached to it.

Just my 2 cents as I am not a lawyer  The people who had the original lease are helping me as they have about $3k worth of property in the dwelling.

I looked into providing insurance for the property (dwelling & liability) for the owner and they advised me that since I didn't have "insurable interest" in the home I couldn't cover it. 

Accessory Dwelling units are allowed if you intend to live in the home.   

I'd configure it as a 1 bedroom with an open floor plan to allow for a spacious-feeling office area.My wife and I are considering buying into a situation like that in upstate New York or Connecticut- we like the idea of an accessory dwelling unit where we could go to conduct business(she's in interior design, I'm in real estate primarily.)