I've been told this is because Raleigh had zoning laws in the past that prevented building duplexes, but I would definitely need to research that more.

The down side of purchasing our PR in this area is the mortgage payments would be quite high, preventing us from saving anything toward a future investment. 

A clogged toilet that's caused by constantly flushing down wipes?

Then you can collect monthly checks and not deal with clogged toilets.

But since this wasn’t the initial plan, I already placed the home in an LLC about a year ago, will that prevent this rule from being valid?

Set aside the full 25k for cash reserves, pay off some debt, perform preventative maintenance (furnaces, etc) or buy next property?

- The street parking is one con, but shouldn't prevent you from getting bookings.

If you don't, you are kind of complicit in the all the crimes he may have committed since and in the future against others you don't even know about yet, which you could have helped prevent.

In addition a jurisdiction can prevent the ADU and JADU from being used for STR.  

That would let the buyer know that the result of this lawsuit could become a lien on the house and prevent them from buying it with a mortgage.