Here is text taken from the HOUSABLE website for Oakland:Utility ConnectionsCategory One: No new or separate utility connection shall be required.Category Two: A new or separate utility connection may be required, but the connection fee or capacity charge shall be proportionate to the burden of ADU on the water or sewer system.Here are definitions of the ADU categories from the City of Oakland website:CATEGORY ONE ADU: Involves either conversion of space within an existing Single-Family Dwelling, or conversion or rebuild of an existing accessory structure; includes no expansion of the existing building envelope other than up to 150 sq. ft. for purposes of accommodating ADU access and egress only.CATEGORY TWO ADU: Involves construction of a new detached or attached structure, including an exterior addition to an existing structure to accommodate the ADU, in conjunction with a proposed or existing Single-Family dwelling.It seems that Oakland is making things confusing with the language they are using, but I still believe that my original interpretation is correct based on the State Assembly Bill. 

This is good and I hope those getting into the space read it! 

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But going off of what I said to @Theresa, I think we're having all these doubts about being able to use this space for anything at all without liabilities since it's an illegal unit.

I would do the condo-ing as David, even doing the replatting, they are sharing space they might need to form an association at the end, so going to that from the beginning seems to be the right decision.

If its clearly spaced out and documented that you are only occupying one at a time while you keep fixing and moving should probably be OK

Also, THe cost to change is hard to say is it on a crawl space, slab or basement.

Clear signs of cooling rents, vacancy upticks, investors vacating the space, foreclosures, capital calls are major indicators of this happening nationwide.

Option 1 and 2 involve either ground up construction or a space you're not familiar with.

The amount of likeminded attendees who have come from similar backgrounds or journeys to begin their real estate investing careers really helps an individual in this space find a place they can call home.