The recent earthquakes destroyed many multi-family complexes and will continue doing so.

Do you know if this would be an issue when it comes time to having my 5 year DCA inspection in ( mid 2025) as the property is only register with them as a 4 family?

The owners refused my advice to reduce price and they both sat vacant for months.

Does anyone have experience exchanging their small multi family property into a single family home, use it as an investment property then move into it as a primary residence after meeting the requirements?

I've read BiggerPockets' Real Estate Investing book and am particularly interested in the house hacking strategy, as I'd like to move out of my current living situation.Our main dilemma is choosing between a single-family home (renting out one room to a close friend) or a multifamily property like a duplex or triplex.

In my opinion, it is better to get a property rented quickly (even if it means reduced rent) than it is to get it rented for the highest amount possible. 

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.

Some might not be livable at purchase but 5k still seems cheap unless there is something off with the data. maybe the prices were reduced on unlivable properties due to back taxes being part of the deal for the purchase.

Investment Info:Single-family residence buy & hold investment.

Insurance liability, I personally know 2 families that lost their children in home pools.