I am not an agent so I don't know if this is against any regulations.

It'll be hard to find something with an FHA loan as sellers are all getting many offers on their properties and FHA will be less secure of an offer in the seller's eyes compared to another offer with more down, non-FHA regulations, etc.  

@Will LHeureuxHave you looked into regulation surrounding your bnb? 

I will certainly take that over some of the obstacles faced in markets that have anti-landlord regulations/laws and rent control.

Let's regulate ourselves so the state doesn't have to. 

In NYC a highly regulated housing environment it is complicated to take anyone to eviction court / civil court, much easier to take folks to small claims court (as long as damage is under $5000).Hope this advice helps you.

Are there local regulations stopping you? 

Given the downward pressure that social distancing regulations, shortages of labor, supply chain issues, and now cold weather continue to exert on new construction, it will be difficult to satisfy demand in the short run.

Its certainly not nearly as regulated as the residential market. 

Some important considerations include:The ADU should have a full bathroom, a cooking area, and a sleeping/living area.Some jurisdictions have ADU regulations, such that you might need a license before it can be rented, or a minimum acreage, or might only be able to rent an ADU to a relative.An investor who purchases a property with the intent to live in it while fixing it up could combine this with a house hacking strategy.