Call flooring contractors and do the same thing.

Either way, the space will need some refreshing, specifically new flooring and some minor bathroom renovations.

If I'm renting out an in-law unit (aka studio on the other floor) it could technically become a multi-unit and could be under rent control - I will consult a real estate attorney when that time comes.

FHA 203(k) loans may be used for home purchases and renovation projects, such as installing roofing or flooring, bringing a property up to code by repairing health or safety hazards, or replacing plumbing or electrical systems.

The flooring is mainly carpet with some luxury vinyl in the kitchen, dining room and entryway. 

I would like my first purchase to be the ground floor for many things in the future.

We added a private entrance/exit, turned 1/2 bath into shower full bath, added a closet and a kitchenette, so our entire lower floor is a fully private 2 room/1 bath STR, including laundry.Any issues arising from sharing a home with travelers?  

The other part is that in doing any single unit work, it appears likely that walls will be impacted in the below floors, if at least for plumbing access - which is an issue while tenants are in. 

This includes new roof, flooring, cooling, paint, appliances, windows, doors, and stucco.

We looked for a property that had a great view (21st floor oceanfront condo) that needed work inside.