Done: It is legal. This is a contract issue and is therefore covered by civil procedure and not criminal code. So, it is "legal". But, you may be sued for breach of contract and be found to have damaged the other party. But, that all has to be argued in civil court and you may win or the other party may be found to have no damages. Finally, be sure to pay your taxes. That actually is a law.
Zoning laws are a legal issue, not a civil one. So are licensing requirements and other hotel codes. The HOA stuff would be a civil matter, but that is only one of the things preventing this sort of action.
