So it is somewhat applicable here.

This is most applicable for growth of a portfolio, not avoiding cap-x. 

As a general rule of thumb most municipalities expect for the applicant to demonstrate hardship.

If you receive a loan application that reads: How many flips have you completed in the last xyz years?

I talked to numerous California investors in real life and phone/Zoom calls who have lost money in far away OOS markets, mostly Midwest markets (e.g. repairs, capital expenses, bad tenants, properties vandalized while under renovation, evicted tenant stole all the appliances, property managers with high fees or overcharging for repairs).

To receive the 4% ratio, you have to submit an application showing the property is your primary residence.

However, it's important to note that this is only applicable within the city limits.

And Alienation of title is a Event of default. there are numerous events of default..

Review the quality of the tenant base (do they have a history of paying on time, what were the original screening criteria, do they have applications on file).

I also checked in our executive meeting and your property is being marketed $100 above the range we gave you and has a resident application.