There is a provision in all my contracts that permit me to assign the contract to a newly-formed entity that I control.

Could put more pressure on 1c than just inventory or increase in permitting.  

I understand there is a cost to have it burned down. the home would have to be prepped to to meet the requirements for permitting.

The foundation was already approved, permitted and finaled years ago for a 3400 sf house, and its solid and I won't be building directly on the overhang edge; but rather back away from the edge a few feet to prevent any load issues all the weight will be on the longer sides of the existing footing.

Make sure any renovations comply with local regulations and obtain the necessary permits if plumbing changes are involved.

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!

Check with the county and make sure it was permitted.

This stuff will hit you if the things were done without permits..

Similar areas that have legal under utilized permitted space convert to max studios that you can fit.  

It seems like every city, county, and state has its own rules, permits, and tax requirements for short-term rentals, and I’m finding it overwhelming to navigate all the different layers of compliance.For example, some places require business licenses, transient occupancy tax permits, or even special zoning approvals.