I have read measure EE "Just Cause for Eviction" rules in Oakland. I see that the rules DO NOT apply to a property of 3 units or fewer, where the owner lives in of the units. Here's the language from the document:

"... Shall not apply to the following types of rental units: ... A rental unit in a residential property that is divided into a maximum of three units, one of which is occupied by the owner of record as his or her principal residence."

I'm offering on 2 different duplexes right now, and I intend to owner-occupy if I get into contract. In this case, I meet the requirement that excludes me and my property from the "just cause for eviction" requirements.

One of the duplexes I'm offering on has one empty unit, while the other unit is rented to a tenant paying about $1,000/month below market. The other duplex has both units occupied by tenants, and both units in that duplex are rented below market by ~$1,000/month. Both duplexes are in the Fruitvale area in Oakland's 94601 zip code.

My questions are these:

Is my interpretation correct, that, because I intend to live in the duplex I buy, measure EE -- just cause for eviction does not apply to me?

If just cause for eviction is not applicable to me, I intend to evict the tenant and bring the unit up to market rate rents. How do I go about evicting low paying tenants? Or is it really as straight forward as contacting a lawyer, and posting notices under their instruction?

For the duplex where both units are occupied, I'll have to first get one of the tenants to agree to move, to open up one of the units for me to live in. And then, I'll need to do an eviction without the requirement of "just cause" as outlined in Measure EE. Let's assume in every instance here that the tenants have been living in the units for ~3 years and are on month to month leases. Is the process really as straight forward as it seems? Or am I blind to a million things that will stop me?

It seems to me, that I have an opportunity to create value for myself by buying properties where the tenants are paying low rents. Often, the low rents are holding down the value of the property from the perspective of investors. As an owner-occupy guy I can buy the property that does not have a high enough return for the investor that lives off-site. Then I can evict the tenant, and rent the property out at market rate. This seems like a path to cash-flow, which is rarely an opportunity here in Oakland for a guy with a 3.5% down payment and an FHA loan.

Am I onto something here?

I'm aware of the 90-day moratorium on evictions and rent increases on rent-controlled properties in Oakland right now (as of April 5th 2016). I have no idea how eviction policy will look on the other end of this 90-day window.

-Danny

Oakland, California

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