Most captive agents can only write up to four or five dwellings.  

Your client got fined for having an “illegal dwelling” and not for renting out as a “Airbnb”

In the case of a flatmates sharing a dwelling under a single lease, many jurisdictions have by-laws limiting the number of un-related adults per dwelling (here it is 4).We have a student rooming house - non-confirming, but permitted - which provides furnished rooms and caters to international students.

The ADUs must not exceed a floor area of 1,000 square feet whendetached, except when one of the dwelling units is wholly contained within the existing residence, in which case the floor area must not exceed 50% of the existing unit.

I just try to keep moving forward and not dwell. 

Also looking over a floor plan for a new 1300 sf dwelling with 3 bed 2 baths.

I have been looking into townhomes, however I am thinking about looking into multifamily dwellings as well.

Yet by definition "a small simple dwelling usually having only one story" (most often constructed by timbers or logs), very few houses in the Smokies are actual cabins.  

We have called around to a few local banks and credit unions but all, so far, don’t deal with rental dwellings.

House hacking financials get significantly stronger as you increase the bed count above 4, or add a ADU or separate dwelling unit.