If your suite is permitted, I don't see a legal reason why any code would prevent you from renting it out.We Airbnb and have mixed thoughts on their provided insurance.

Technically you only need to cancel but guests very much appreciate it if you can go the extra mile and find them alternate lodging.  

He usually ends up doing repairs after each tenant leaves and since the parents are usually the ones responsible he has had only a few problems collecting extra repair money.

We have paid down the house (extra payments) and currently owe 118000 roughly. 

With extras the original owner paid the hefty sum of ..........$ 6840.00 .    

We have 3 extra bedrooms since its a 4 bd 2.5 bath and we are going to rent out two of the rooms for $700/door so total money out of our pocket every month is only $400!

If you're getting difficult tenants, then you can run into many, many problems and it's seriously not worth it the extra percentage on the cap rate you could get. 

As long as you are permitted to divide the land into the parcels sized as you imagine you won't have any problems.As a clever strategy if you are permitted by your local government to divide the land, locate a builder and ask him to partner in new construction. 

If you have properties that are cash flowing, banks will normally recognize the extra income after you have owned the rental investment for two years.

Professionally, I'd figure out what you need & build and then "save" (aka "not use up") additional land for the NEXT expansion versus utilizing it for extra-wide driveways & aisles.Also, is anyone helping you design this?