How are they regulating wether you are owner occupying the property?

If you have all tenants on M2M you can quickly adjust by raising their rents when rates go up depending on your state regulations. 

Burien is one of the few municipalities around that hasn't enacted any further rent regulations on top of state regulations, except for a licensing fee.  

There are SEC regulations that need to be followed when raising private money.

William,Option 1 - pay close attention to the fees and regulations with HOA/COAs.

You can potentially rent it out as a "housemate" listing, or do AirBnB/HomeAway (based on your cities STR regulation).

You need to improve your screening or raise your standards.Tell the upper tenant you will not be renewing the lower tenants lease in April and try to convince them to stay.Give the lower unit the notice according to your state regulations when it is time.Regardless of whether the upper unit tenant stays or not I would definatly not be renewing the lower tenant.

@Derek Gendig - US banks are notoriously difficult on this issue due to regulations requiring that you appear in person to open the account. 

Legally, depending on your state codes, you probably need to give more notice.Learn you state regulations before you take over the business.

Its annual STR rent is likely more than it would cost to rebuild the duplex (Peak rent is ~$350/unit per day = $700/day for the duplex, Minimum rent is $80/day per unit - it is rented virtually every day).The fear is San Diego STR regulations.