However, the inspector mentioned that the 2nd and 3rd floors are labeled as "Artist Dwellings," though he wasn’t sure what that fully entails.He suggested applying for a special permit to present the space as artist studios or dwellings, with the hope of eventually converting them into long-term rental (LTR) apartments under that designation.

I am a business intelligence pro & designer who is a host and passionate about STRs.

This was the ideal value add situation, where I didn't have to change much on the layout.. mostly just design.

You could find a partner to help establish an LLC that rents out your property long term, then subleases on a short term basis (master lease is one that is designed for subleasing, it is a way many people pick up STRs without actually purchasing any property, they just find owners who are okay with them subleasing on a STR basis). 

I use a very non scientific $20 per foot for furnishing which includes a designer. 

You can usually get the zoning destination with the property listing, then look that designation up in the town's zoning code to see which uses are allowed there.Basement habitation - There is a concern that limited egress, fire and CO are major risks to bedrooms and habitation in general of basements.

🌟Make Valuable Connections: With fun-filled activities and networking opportunities, BPCON is designed to make it easy for you to connect with and lean on like-minded investors who share your goals and aspirations so you never feel alone on your investing journey.Boost Your Potential: Buzzing with energy, inspiring speeches, and the best teachers, you’re guaranteed to leave full of momentum and confidence to get started and go farther on your financial freedom journey.Close More: The most approachable environment where you can meet your mentor, partner, or teammates and grow your portfolio to unimaginable new heights.🙌 Don't miss out on this incredible opportunity to learn, grow, and connect with the BiggerPockets community.

Additionally, the owner is considering design plans to convert part of the upstairs into three apartments, adding further value and flexibility.I’d love to hear your thoughts.

Easy to install but requires you to have prior design software knowledge. 

I actually ended up working with a DFY arbitrage program that finds the right property, negotiates the least terms with the landlord, and even has an interior design department to set up your listing.