In addition, if a property owner decides to replace a carport or driveway with an ADU, they would not be required to replace that parking."

Additionally, not everyone is borrowing from a commercial bank.

This can help cover your mortgage and potentially generate additional income.Partnering: Look for potential partners who may be interested in real estate investment.

Additionally, I'm based in Michigan, and I would like to know if anyone in the community is familiar with companies or professionals in Michigan who can assist in the process of forming an LLC and managing the legal aspects of transitioning Airbnb properties.Any insights or experiences you can share would be immensely helpful as I navigate this potential transition.

It's been rezoned to allow a live/work component, allows 4 units, and the FAR allows room for plenty of additional SF. 

Not saying it can't work... just requires additional caution.  

Additionally, I am aware that once I move out, I can list the home on VRBO and several other platforms to help boost bookings.The reason why I'm considering/leaning toward selling the house, is that when I begin to run the numbers, the expenses exceed what I could potentially make.

@Wendy Pattonyes, thank you for the additional information. 

I’m in no rush to move once I get into something, especially if it makes more sense to stay out for an additional year or so.

As OP said, hard to find umbrella that will cover STR papered insurance unless I find a carrier that writes it under my name personally and names the LLC as an additional insured (I own my properties under LLCs).