Purchased my 1st rental property last year in Cleveland, a 2unit MFH with 10beds between the 2 units. 

I'm interested in multi-family investment and want to buy a residential multi-family (2-4 units) to live in one unit.Ideally in Montgomery County as I live in Rockville (or PG county/Baltimore)

The 1 and 2 BR units at the same property were not experiencing this. 

So, landlords of exempt units don't even have to be concerned at all.   

In a  Dplus area, 2nd floor unit, considering installing LVP. 

I would consider the tenant's past, as well as the condition of the unit, my local market, and other factors.

Secondly, how do you finance these units? 

We Normally put steel posts nearby so no one runs into them.In the third picture one unit is just in front of the picture, then a second unit is at the far end on a post.These can be set off by deep fog, rain or sleet. 

Everyone associated with living there and/or paying for the unit goes on the lease.

I've found some construction companies that specialize in ADU (Additional Dwelling Units) conversions/construction in SanFrancisco and San Diego but not as many in LA.