Backyard shed as a short term rental

[Pal Sa]

I am thinking of building a shed in the backyard for rental purposes. I live in the bay area. If you are knowledgeable about various aspects I need to consider, please do share. The high-level plan is to build a cozy shed with space to sleep and work and have a mini kitchen and toilet and shower. It has its own entrance. Ideally, I would like to rent it out on a short-term basis and if allowed on a long-term basis. If I can't rent it out, I will use it for my personal purposes. This is not an ADU. I dont have the budget for building an ADU.

Is it feasible and possible?

Can a shed have a toilet and shower?

Approximately how much does this project cost? How is the permit process for sheds?

Has anyone done this in the bay area successfully? I am in San Mateo County. 

I am confused about parking. I might have to let them parking in the driveway and I park one of ours near the curb. How did you all solve the parking problem? Do short-term renters have a car? They do most likely. I live in a suburb and public transportation is not close by.  There is plenty of street parking.  I wonder if neighbors are going to resist. 

Do I need to get a separate internet connection or upgrade the existing one and share wifi?

[John Underwood]

This sounds more like an ADU honestly.

By the time you add everything you need you'll have some money in it.

I'd check on permitting first.