I've lived in the OC pretty much my entire life. 

I’ve had a tenant through Airbnb which has extended her stay twice (each a month) and has been giving feedback as to how great it’s been.I come to find out (via a lead paint inspection and going down to check on the property) that she is 100% doing rental arbitrage which was not approved by me.

I am currently a renter in Northern California with no plans to buy in the market where I live.

Correct, the same prohibited transactions rules would apply to using a unit as an office as they would to living in the unit.

I live 3-4 hours away, so I'm putting together some local resources.

I live in the Chicago suburbs, so just about every type of neighborhood is available... cheap, expensive, old, recent construction, well kept, run down, etc.  

How are you able to tell what is the average salary of the people who are living in a neighborhood?

Has its own kitchen, bath, laundry hookups, little yard and living room space.  

As I am living in the property I am updating things such as the bathroom, paint, cabinets, countertops, and doors.

@Stephen Rinaldi just curious, how long is the owner required to live in the property under these terms?