3) Should I bite the bullet and put up a 6' fence to avoid any issue (don't have funds for this expense)4) Should I call my insurance guy or would that be the worst thing to do?

This matters because with the FHA loan I'd be looking to get a 3/2 and rent out both of the rooms, but worst case scenario, I want to still be able to afford the house if I can't get the rooms rented out.  

Regardless what happens I already learned a lot but worst case scenario we make a good chunk of change worst case we rent it out and do a cash out refinance or what ever and do it again.

Worst case, it gets outlawed in a town AFTER you’ve bought a place there & now you have to sell at a HUGE loss bc there’s no buyer demand once STR use is banned!

To me I'd look for both or I would just use my cash elsewhere or worst case have it sitting in overnight treasuries or some such to get some yield while maintaining optionality.  

Worst case they do a mold inspection.

If you have  a spouse and/or children, my approach would change.Assuming you haven't "settle down" yet, if I were in your position, I'd hunt for a 4-plex multifamily home where you could live in the worst of the 4 units and rent out the other three.In my market of Omaha, Nebraska, I can find four unit properties that would not only cover all my cost of living, but cash flow with me living in one of the units.Obviously, it's a bold strategy to go from not being a landlord to managing three separate tenants, and if you live in the place, I imagine you'll want to manage it, but if you are the type of person to study, risk, and follow through, you will drastically improve your situation by doing this.It would be my path because I could get so much more real estate on a primary than an investment property.

The city has been the worst in the sense of time.

Case in point -- I also own a few SFH in KC and the house I own in the "worst" area has had the same tenant, a single guy, in it for over 5 years now and he has never been late on his rent. 

What is the worst case scenario in regards to the inheritance tax?