house hacking illigal in Los Angeles?

[Charlie Chavez]

Hello,

After a aunt has passes i inherited her house in the Los Angeles area, house was given to me with current tenants. My aunt rented out the home per room with a total of 3 rooms. i realized the rent was lower than current market prices for the area so i decided to try to evict everyone and rehab the home and re rent per room. After getting information from lawyers i was told by multiple lawyers that renting per room is illegal and i would get a hefty fine. I wasn't aware that house hacking was illegal according to multiple eviction lawyers. I don't want to be in deep water if was i am doing is illegal so i am considering to sell the property because i would't be able to pay for the mortgage by not renting out the spare rooms i don't need. 

if anyone can clear any of this up for me because iv been a fan of bigger pockets and was surprised to find out what i was doing had a name ( house hacking), but after this scare i much rather sell and maybe get a legit multifamily home and house hack. 

Thank You