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?

This would be the safest approach but also, anyone that is worried or has extra strict oversight in their area could simply avoid anything alcohol related in their packages.

In California the DRE does not require you to join any association.

You could also use a Fannie May Home style renovation loan which a conventional loan and require 5% down vs.

“Broker” is a legal term that often requires standardized coursework and a state license. 

So, coming up with more capital to invest in another property requires some creative thinking.

Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. 

The City could also require solar power.

I'm also pretty handy and would be open to purchasing a property that requires some minor work before tenants can move in.

We typically pay somewhere in the range of $3500 for a new, basic furnance, including install, if there are no other modifications to the system required.