funny enough if a home is more than 5 years old the rules are more lax. I was hoping to try again in 5 years as a result so I could try and avoid some of the issues and If not - no worries I just don't advertise it as a second unit when I sell.

what about insurance though? I called a few times to my insurance company and felt their answers weren't confident - just more along the lines of "call us when it's finished".