How does your insurance react to Airbnb? 

They have to be fair.Call HUD or a fair housing commission, or other similar oversight authority, and pretend like you are a tenant and your landlord just said that to you, and see how they react. 

And if so, how does the bank react when the original name is no longer on the insurance policy?

Or better yet, also search names and message body too?

@Jason MercheySo overall, yes we do hace a tsunami of new MF inventory slated to come online in the next 2 years, however, unlike other asset classes the MF space is going to react differently.

Don't use excel to manage all leads. it's possible, yes. but you're going to run into issues and ain't no body got time for issues!

Or are we just over reacting?

As the others here mentioned before, it's critical to check with the local planning commission and city/county governing bodies.  

But the weird thing is no body knows who pays taxes, even on record the seller said; "yeah I was confused about that for the past 10-15 years"

This is typically the case here in the Bay Area, too.Typing Alexandria Louisiana in the body of a post so that locals to OP, hopefully, can chime in and tell us how it is in LA.