If I would not consider fighting this, it means few people would.I hope you knew this could happen as part of your due diligence when adding the JADU  Good luck

A lot of people decide to enter the world of short-term rentals without first checking the municipality's short-term rental policy. 

We got it ready to rent and although we had many many people inquire, they didn’t want to pay the price we posted.

So, then you’d have change title to your personal name to refi using a primary residence loan, so you’d have to find a lender, FHA is out, which would let you Simultaneously transfer title to your name and refi at the same time…might need some luck on that one.Also it is Not a cash offer, which means you Already have the cash when you offer…..which is Why people prefer a truly cash offer, since there is No chance of the sale falling through due to the buyer being unable to get the loan (for their “cash” offer). 

Focus your energy on moving forward. if you need help with people to get the space ready again to rent let us know.

Unless the people were significantly value oriented (think super cheap) 95% of the time they would move on to another location over taking the double beds.

However, I am seeing posts here that many people utilize their short-term rentals for RE status by using Schedule E.

I would caution against getting a partner, there are some real downsides no matter who it is, I’ve been through it with great people and it can be difficult to manage two visions.

@Dan Bowe - The truth it, you need real life experience prior to taking other people's money.

A lot of people have fallen asleep at the wheel when it comes to that issue and the risk is that, once people realize how bad it is, they will stampede out of the market and there might not be buyers at any price.