What about building an accessory apartment?

Of course if you want to switch to different license type, you have to go through the whole application process again, and pay applicable fees.I believe this is governed by the accessory dwelling unit ordinance which was revised recently. 

We repainted the cabinets, added all new stainless steel appliances (most were given to us through various deals we struck with people), granite counters, all new flooring and carpeting, painted all walls and ceilings, put tile in all bathrooms, replaced all the ugly lighting fixtures and door knobs/accessories.

Hey @Justin Rank I just read through the August zoning changes and it seems like you can still build an accessory carriage house or am I missing this. 

Purchased SFH with "accessory dwelling unit" - but it was really set up as two units.

Accessory dwelling units are permitted in single families only.

Mom bought a 3/2 home (California) with a detached one bed, one bathroom unit, that we believed to be permitted as such, as the MLS listing "description" described as "The guest house is a 1/1 and includes it's own indoor laundry, single car garage and updated kitchen with granite countertops," however, it turns out the 1/1 was only permitted as a shop with a bathroom, and was never permitted as an Accessory Dwelling Unit.

Is it zoned multi-family or a single family with an accessory dwelling?

Example: you have $50K to rehab the house. your draw request says that you will spend $12,500 for "cabinetry", $9,500 for "bathroom accessories", and $10,000 for "decorations"... but you go ahead and start changing the plumbing, electric, and put a new HVAC.... well, the bank wont give you any money until you get to the $12,500 cabinets, or the $9,500 bathroom accessories. 3) The bank will keep 10% of each draw until the end. 4) The contingency reserve can be requested at "anytime"; HOWEVER, Unless your bank feels the changes in the work were necessary, they wont give you the money till the end.5) Choose right your contractor before the loan closes...

I only see how this could be useful if you are refinancing a home you already own or buying the next one.This is the pdf from Fannie Mae with more information: https://www.fanniemae.com/content/fact_sheet/homeready-boarder-accessory-unit-income.pdfAny guidance would be helpful.