That (and insurance issues) are two big risks.

Law enforcement is now targeting third parties involved in “cooking the books” that “force by fraud” qualify clients for Covid-19 relief.

I have to check on codes/laws/regulation, but I know CA is on a high of making thinks convenient to build those at the moment.

Is there any legal notice i should provide to the tenant as per the laws? 

It is just like law firms from NYC have a full team vs local independent lawyers have a one-man army or a very small team.

.🔹 Airbnb is Facing Increasing Restrictions:New York City has implemented strict rules requiring hosts to register and be physically present, effectively banning many short-term rentals.Dallas and Atlanta have passed zoning laws banning short-term rentals in residential areas.California cities like San Francisco and Los Angeles are ramping up enforcement with hefty fines for non-compliant listings.🔹 Co-Living is Gaining Legal Ground:Colorado eliminated all restrictions on the number of unrelated adults living together statewide as of July 1, 2024, marking a major victory for co-living advocates.This week, Jacksonville Municipal Court ruled in favor of PadSplit, voiding citations for “illegal boarding houses” on constitutional and fair housing grounds.Cities like all over like Washington D.C. are considering zoning reforms to allow more co-living developments as an answer to the housing crisis.As Airbnb restrictions tighten, co-living is emerging as a scalable and legally sound alternative that balances affordability, tenant stability, and community needs.

I’m getting ready to make my next move in 2025 and I’m contemplating on staying here and buying a multi family property as an investment out of state (only an hour away) which would be a lot less capital and have a lot more land lord friendly laws or buy another multifamily as a primary residence locally and hack that property I’m single and live alone.

So now I got a letter from an injury lawyer not in the LLC name  (the property owner by LLC ) but in the name of the HoA however the LLC address not the HoA address (the law firm seems confused it idk).

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.

Of course, that opens up a whole new can of worms RE the tax implications of having the in-laws live at below-market rents in one of our properties.