I know that people are doing really well with short term rentals in our area and given the changes to the additional dwelling units in CA that may open up some additional possibilities. 

I was wondering if anyone had any experience or was planning on building or converting existing living space into an extra unit in California, or any state for that matter. The reason I specifically mentioned CA is be...

Also, did you have to do anything with zoning/land-use restrictions to be use your property for multiple dwellings?

Zoning and the number of dwelling units are not necessarily one in the same.

This is in the mountains and I only want the building as one big room. No appliances, electric, etc.  just one basic room, 500 square feet.  

Here is the layout,, Main house has 3 units and there is a stand alone cedar log cabin 920 sq ft. (4 units total - 2 separate dwellings) There is also a two level garage that is attached to the main house.

My insurance covers my liability ($1 million per property) plus covers dwelling at no additional cost. 

My holding agreement states specifically that I am holding the dwelling for the applicant specifically until a certain date.

Ok, with all the info or misinfo flying around, I went through several PDF's from HUD and found this - https://www.hud.gov/sites/docu...Page 3, section 2 states - Under specific exceptions to the Fair Housing Act, the reasonableaccommodation requirements of the Act do not apply to a private individual owner who sells hisown home so long as he (1) does not own more than three single-family homes; (2) does not usea real estate agent and does not employ any discriminatory advertising or notices; (3) has notengaged in a similar sale of a home within a 24-month period; and (4) is not in the business ofselling or renting dwellings.

Once the building gets a CO and is being rented, you can rewrite it to a Dwelling Fire policy.