Is it big enough that you could build a small accessory dwelling on the lot and rent it out?

We have a legal accessory apartment that we currently rent out, however, as far as I can tell, we would be in violation of the zoning commission if we were to move and rent the main section as well.

There is no "middle man" to pay fees to or delay payment, and you have the coveted paper trail you desire.  

and build an accessory dwelling unit (ADU) on  Prop 2 which would generate about $2400/month gross rental income, bringing that property's income to $6,000/month.

If you're looking for a house hack I would wait patiently for the right 2-4 unit that works well for you and your own individual needs or I would buy an older SFH with an accessory dwelling unit (or the opportunity to add your own or convert an unused structure on the property).

The accessory dwelling unit shall be limited to a maximum of 1 bedroom.7.

However, I am not sure that if this space is converted, it would be considered an Accessory Dwelling Units (ADU), which the city prohibits. 

My day job is being the manager of a Auto accessory store and the co-owner of a rental equipment company.  

I'll start with a list of the bare facts, then more general info, and conclude with my specific questions.Home in question is an accessory building attached to a rental property.

Resolution No. 2019-007, approving Ordinance No. 1330, an ordinance to permit accessory structures in the form-based districts (CN, CN-Mid, CN-SF, etc) to be a maximum of 25’ in height or to match the height of the primary structure, whichever is lesser.