Backstory: two luxury cabins in the Rocky Mountains, each sleep a max of 16 but 8-10 guests is more common.

Example: If your home was built in 1995 and sleeps 16, you will not be required to install a sprinkler system if you applied for your permit today.

Sometimes, it's a great way to go to sleep :)

I am currently amending my leases for this as I just had an inherited tenant forget to put the drain hose from his portable washer into the tub and had been “sleeping” and ran the whole cycle while gallons and gallons of water flooded a downstairs unit.

you wouldn't be the first to live in one (sleep in hotel parking lots, they will never know you are there). 

A “pro” might say no big deal, and the chance of a fire where the person sleeping can’t get out is unlikely, though costly for you, especially if the insurance company bails because you knew it wasn’t a bedroom. 

(I've often though about registering the DBA of "Karmic Realty", slogan:  get what you deserve.)Do the right thing (according to your own moral compass) and you can make money AND sleep at night.  

I always say Real Estate is not the type of industry that you want to put in Part-time effort, there were nights I didn't even get to sleep because straight after I finished my 7 Hour college day, I was driving 40 minutes right back to my project to make sure my guys were completing their job. 

Gulf front, 6th floor (so your views are over the tops of the palm trees) master bedroom with a king to sleep and an ensuite, two other queens, another bath and full kitchen.You might consider this a hybrid investment with vacation benefits.

Is it natural or are there others that have lost sleep when they had/have first started out?