I believe in many circumstances a permit or use license will be required by the municipality depending on the use. 

These days it is generally very easy to set u a quick LLC - your lender should be able to help and explain the circumstances - there shouldn't be any catch 22s or issues

Balancing these responsibilities with the demands of this project, including finding suitable contractors, organizing communications, and ensuring timely responses, has proven to be quite demanding.In light of these circumstances, I am seeking insights on potential additions to my real estate team that could streamline this process and enhance its efficiency.

Analyze market circumstances, project remodeling costs, weigh risks and rewards, and do extensive due investigation on possible investment properties.

You are correct, the provider of the water and wastewater is a government entity that can lien the property if the bill goes unpaid and the utility is based on usage not a flat fee.My leases also state that any monies owed are considered rent under the lease contract, but under these circumstances, I can't enforce it.

In light of these circumstances, I'm seeking advice on the best financing options to address this costly project if insurance coverage falls short.

Well in most circumstances, anyway.

Where you can use that deprecation depends on a variety of facts and circumstances. 

Thanks Hi Seidy, like others have mentioned, this is not an advisable strategy in 99.9% of circumstances.

*The short-term rental must remain an accessory use to your full-time occupancy.Under no circumstance shall the short-term rental services become the primary use of the property