@Maria Rina Boidon Tough to really dive in with the high level info but first I'd determine how you want to invest in multifamily.

Use the search feature (magnifying glass, upper right) and search for "tenant occupied property" or "tenant occupied rental" to find a ton of discussions.You need to know what you are doing.

LLC protection is important generally, but not nearly to the psychotic level that people talk about it for the first investment.

Get a base level of experience.  

Other books are either high level how they got into PML or how to raise private capital (not as the lender).

Paperwork says depending on Level 1,2 3 the tax is reduced. 

More sophisticated and experienced investors, and those employing knowledge attorneys will understand that while not an absolute, a REG D offering offers some amount of comfort in that the sponsor has placed his offering on a more “sophisticated” level than an intrastate or general exemption offering.  

I've got to go take care of some HUD tenants James, sorry I didn't answer the question to your satisfaction, I can imagine that must be frustrating for you to think that I have to do something to the level in which you require in order to be sufficient.

I believe it still would be.Finding properties that meet the ADU requirements can be hard, as they occur more in the upper price points.

Even though it’s rent controlled, we don’t feel the level of tenant entitlement is as high as A or B areas.