I believe it's a violation of the law.

For example, https://legallycrm.com/ will work perfectly for law firms, meanwhile it will not work for ecommerce business.

In some areas, there are some really strict rules for creditors when it comes to homestead law.

So this is new to the 32 states who did not require this by law prior. 

This was a bit of a let down hearing all of this, since there don’t seem to be many duplexes or front houses with in-law suites that would serve the same purpose.Is there something I’m missing?

In regards to point 4), you mention the possibility of a tenant living for free indefinitely inside an unwarranted unit, due to the inability of the landlord to enforce rents, and the inability to perform an eviction.It's my understanding that if the Department of Building Inspection (DBI) discovers the unwarranted unit, it's possible for them to force the landlord by law to legalize the unit.

It also depends on the type of properties (some less expensive ones attract more problematic tenants) and the local laws around rentals.

My main goal has been to keep buying rental properties, however, so far my experience has been a very challenging one in Canada because of the tenancy laws, and interest rates.

I grew up north of San Francisco but moved to Reno, NV to live and invest because of it's proximity to CA, low property taxes, stable job growth, diversified population growth, lower prices, strong rents, much more landlord friendly tenant/landlord laws, etc. 

That being said, if I was your father in law, I wouldn't do that.