SupplyLas Vegas is unique because it is a tiny island of privately owned land in an ocean of federal land.

Where I'm at, if you leave a tiny piece of an existing wall and rebuild the remaining 99.99%, it's a remodel instead of a new build and the property taxes don't reset. 

If you're talking about building an interior wall to create a bedroom, this could work so long as you aren't significantly reducing living space compared to the competitive rentals. 3 bedrooms with a tiny living area could cause problems.

Still boils down to will the developers go for it and will the market receive them well.Portland came up with some really high density rules to allow these little tiny home villages and the planners and city was so proud and a few developers tried them but the market ( buyers) dont like them and the projects have failed so no one is building them anymore.. 

@Zachary Freeman- How do the utilities work on the tiny home?  

The properties are often flawed and no well-suited for a family to live there long term (lot's of bedrooms, but tiny living room, no yard, no garage etc), that's why they sold for a discount an get used as STR.

I focus on quality not quantity.

I really suggest you change your goal from making a tiny taxable cash flow (anything less than $1,000/mo per door.) until capex eats it up.

DC is also very tiny. 10 square miles.

Many hosts have success with a mix of RVs, tiny homes, and prefab cabins to attract different types of guests.