They do follow very strict guidelines.

The deadline is very strict, and the custodian must receive the money by the deadline.If it's anything other than A or B - there could be some important complications.Once you acquire the property, ideally you should limit your personal use to no more than the greater of: 14 days, or10% of the total days you rent it to others at a fair rental price.If you exceed this number, your tax deductions will be limited.And when I say "personal use" it does not mean just you.

The city I'm in is pretty strict on rentals and one thing the house did not pass on was the headroom at the top of the stairs going to the upstairs.

Again, I am not in this for income, strictly for a good retirement and assets to leave the kids. 

I would call the tenant and let them know it is strictly prohibited and if it is not taken down immediately I would file notice to vacate.

My approach when taking over inherited tenants is strictly business.  

It looks like Berkeley has some new rules about it but does anyone know how strict they are that it "Must be your primary residence?" 

They sell the majority of their loans to Fannie/Freddie so they need to adhere to very strict lending guidelines. 

I'm looking at this strictly as a business and am looking to make as much profit as possible, obviously.Any insight on great upcoming areas, or any advice on when or how to do this PROPERLY, would be so appreciative.Thank you!

I am strictly in wholesale mode at this point.