I assume that when bank does the appraisal, it will still treat it as a single family house and uses the comps to appraise.

Treat this as a business. 

I'm not an expert with Airbnb, but I wouldn't treat it much different than my LTR. 

They can easily spread to other rooms or in multi-unit buildings, into other apartments.My thoughts:  have the entire house treated, and keep the old tenant's security deposit. 

You went over the lease, treated her with dignity and stated your rules on whats important to you.

@Gevin GlinesThere was a recent post you created about house-hacking.House hacking makes your tax situation more complex.You purchased a property that is treated as both an investment property and a personal residence.

I seriously look forward to hearing how that tenant treats you and if your succesful in that plan.

Most individuals are looking for cash flow investment properties I recommend that they treat their purchases like you would a flip.

You are a business owner now, treat your career like it. 

Most of the country has laws that treat stays of 30 days or more as long term rentals, which gives tenants more rights than short term renters have.