We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for).

Investment Info:Single-family residence fix & flip investment.

@Jennie Berger The RS-3 Zone allows for Single-Family residences & 2-Flats as "Permitted Uses"; however, the RS-3 Zone still requires 2,500 sq.ft. of lot area per unit (i.e. 5,000 sq.ft. for a 2-flat) unless the lot meets the exception for the characteristic of the block as previously mentioned by Nicolas; then it can be reduced to 1,500 sq.ft. per unit in order to construct a 2-flat.

Sounds like maybe equity skimming?

The tried and true version is pulling a list of properties whether you're targeting distressed homes or high equity homes in which case you can pull on something like Propstream or Propwire, you can skip trace through them or someone like Prime Tracers which has a pay as you go system. 

But you cannot exchange from an investment property into your primary residence. 

I was just looking into this, and it seems that Oakland will only allow ADUs on properties with a single family residence (not multi-unit properties). 

Take the average household income in an area of working class residents. 

FHA loans require living in the home as your primary residence for 1 year after purchase.

You know the model and have systems so tapping into your equity is a smart move.